German exports boost growth hopes

German exports grew in May for a sixth straight month to boost optimism that growth in Europe's largest economy could accelerate…

German exports grew in May for a sixth straight month to boost optimism that growth in Europe's largest economy could accelerate in the second quarter.

The Federal Statistics Office said May exports rose 11.8 per cent from May 2003 as strong global demand for German goods continued to fuel the recovery.

It was the third month in a row that export growth exceeded 10 per cent, but economists said the data highlighted again Germany's recovery would be at risk if the global economy eases.

"Germany is benefiting more than most from the global economy, because we produce capital investment goods which are now in particularly high demand," said Mr Klaus Schruefer, an economist at SEB in Frankfurt.

Sales of cars, car parts, machinery and chemicals accounted for almost half the country's exports in the first four months of the year, the Statistics Office said.

The trade figures follow two months of strong growth in industrial orders and output and the first fall in seasonally adjusted unemployment in five months in June.

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