BERLIN, April 9 Reuters German exports rose in February, boosted by surging trade with China in a fresh sign that factories are busy in Europes largest economy despite a sharp drop in trade with the United Kingdom after Brexit.

Seasonally adjusted exports increased by 0.9 on the month after an upwardly revised rise of 1.6 in January, the Federal Statistics Office said on Friday. Imports rose 3.6 after falling 3.5 in the prior month.

A Reuters poll had pointed to a 1.0 increase in exports and a 2.4 rise in imports. The trade surplus shrank to 19.1 billion euros. On the year, exports to China increased by 25.7.

German exports to the United Kingdom fell by 12.2 on the year in February and imports slumped 26.9, the German Federal Statistics Office said. Germany is the UKs biggest trading partner.

Exports to other EU states dipped 0.3 on the year and imports rose 0.7.

The UK left the European Unions single market at the end of last year, raising barriers to trade. That final split followed more than four years of wrangling over its terms of exit from the EU, during which German businesses had already begun to reduce their interactions with Britain.

German companies are benefiting from strong foreign demand… even if there are setbacks at the moment, things tend to look good for German industry, Thomas Gitzel at VP Bank said.

Separate data released on Friday showed industrial output in February fell by 1.6. A Reuters poll had pointed to a rise of 1.5. Economists…