Euro-Area Exports Decline for Second Month Amid Recession

“Euro-area exports fell for a second month in October as the economy struggled to pull out of its second recession in four years.

Exports from the 17-nation currency bloc declined a seasonally adjusted 1.4 percent from September, when they fell 1.3 percent, the European Union’s statistics office in Luxembourg said today. Imports rose 0.6 percent in October and the trade surplus narrowed to 7.9 billion euros ($10.4 billion) from a revised 11 billion euros in the previous month. Labor- cost growth accelerated to 2 percent in the third quarter from 1.9 percent in the prior three months, a separate report showed.

The euro-area economy shrank 0.1 percent in the third quarter after a 0.2 percent contraction in the previous three months. The European Central Bank this month lowered its outlook for this year and 2013. Still, investor confidence in Germany, the region’s largest economy, jumped to a seven-month high this month and economic confidence in the euro area unexpectedly rose in November.

“There aren’t many signs that the economy will be improving before the second half of next year,” said Annalisa Piazza, an analyst at Newedge Group in London. “At least, things aren’t going to be worse than this year. Confidence has improved because of the perception that the ECB and European leaders are slowly but surely moving in the right direction.”

Full article