Exports down 1.2 vs forecast 0.4 dip
Second month in a row of falling exports
Analyst dip adds to risk of Q3 recession

BERLIN, Oct 5 Reuters German exports fell more than expected on the month in August, federal statistics office data showed on Thursday, as weak global demand hurt the country39;s exports.

Exports fell 1.2 in August from the previous month, data showed, compared with a forecast 0.4 decline in a Reuters poll.

August was the second month in a row to see a decline in exports, following a downwardrevised 1.9 dip in July.

ING economist Carsten Brzeski said cooling global demand was worsening structural problems.

As a result, trade is no longer the strong resilient growth driver of the German economy that it used to be, but rather a drag, he said, adding that the export figures add to the risk of the economy sliding into recession in the third quarter.

Imports also unexpectedly fell by 0.4 on the month, the data showed. They had been forecast to increase by 0.5.

The foreign trade balance showed a surplus of 16.6 billion euros 17.45 billion in August, versus an upwardly revised surplus of 17.7 billion euros the previous month.

Besides China, exports to almost all destinations relevant for German companies were down in August, with a marked 2.6 decline in euro zone exports and exports to the United States falling by 1.3. Exports to China were up 1.2, the office said.

Sentiment in the German export industry was markedly worse in September, an Ifo…