BERLIN, Aug 7 Reuters German exports fell more than expected in June due to weak demand from the United States, the country39;s key trade partner, and from the rest of the European Union, official data showed on Wednesday.

Month on month, Germany exported 3.4 fewer goods in June, the federal statistics office reported, more than double the 1.5 decline forecast by analysts in a Reuters poll.

The foreign trade surplus narrowed to 20.4 billion euros 22.3 billion from 24.9 billion euros in May, missing analysts39; expectations for 23.5 billion euros.

The trade data spelled more bad news for the German economy, which slipped into contraction territory in the second quarter of 2024, again raising the specter of recession as the country fails to pick up steam following years of weak foreign demand, high inflation and sluggish consumer spending.

German industrial data, however, provided some grounds for optimism.

Alongside the trade data, the federal statistics office also reported a strongerthanforecast 1.4 rise in industrial production in June. Industrial orders also rebounded strongly that month, but economists have warned that the broader picture for the German economy remains gloomy.

Exports to the United States, which dropped by 7.7 in June on the previous month, could suffer even more now that the economy there is showing signs of weakness, said JensOliver Niklasch, senior economist at LBBW.

The environment for the German export industry remains difficult, he…