European exports declined in March as the euro's advance to a record against the dollar made the region's products less competitive abroad.
Euro-area exports fell 2.9 percent from February, when they gained 0.6 percent, the European Union's statistics office in Luxembourg said today using seasonally adjusted data. Imports were unchanged in March, giving the euro region a trade deficit of 2.4 billion euros ($3.7 billion) compared with a 1.6 billion- euro surplus the month before.
The euro's 15 percent gain against the dollar in the past year is making products from the 15 nations that use the currency less competitive. Exporters may rely more on shipments to emerging markets as the U.S. economy weakens.
"There's some slowdown in demand from the U.S., but demand from Asia is still solid,'' said Mitul Kotecha, head of foreign- exchange research at Calyon in London. "The stronger euro will become a growing burden for Europe, and that will imply slower growth for Europe as a whole.''
Rhodia SA, France's biggest specialty-chemicals maker, said May 7 that first-quarter profit fell 29 percent, hurt by the advance of the euro and increasing raw-materials costs. Chairman Jean-Pierre Clamadieu said currency effects may cut full-year earnings by 100 million euros.
While the euro has fallen 3 percent against the dollar after reaching a record $1.6019 on April 22, the European currency still is more than 6 percent higher since the start of the year. The euro traded at $1.5501 at 11:45 a.m. in Brussels, up 0.3 percent on the day.
Significant Retreat
'The significant retreat March exports reinforces belief that euro-zone exports are now being hit increasingly by the very strong euro and significantly softer domestic demand in key foreign markets,'' Howard Archer, chief European and U.K economist at Global Insight in London, said in a note to clients. "Even previously very resilient German exports and foreign orders appear to be faltering now.''
Shipments from Germany, Europe's largest economy, declined 1 percent in March, while those from France fell 2.8 percent, according to today's report.
Exports to the U.S., which dropped in 2007 for the first time in four years, increased 1 percent in the first two months of this year, while shipments to the U.K., the euro area's biggest market, advanced 5 percent, today's release showed.
The detailed data on trading partners, which are published with a one-month lag, also showed that exports to China jumped 21 percent in the January-February period, while those to Poland increased 24 percent and shipments to Russia rose 28 percent.
Euro-area exports fell 2.9 percent from February, when they gained 0.6 percent, the European Union's statistics office in Luxembourg said today using seasonally adjusted data. Imports were unchanged in March, giving the euro region a trade deficit of 2.4 billion euros ($3.7 billion) compared with a 1.6 billion- euro surplus the month before.
The euro's 15 percent gain against the dollar in the past year is making products from the 15 nations that use the currency less competitive. Exporters may rely more on shipments to emerging markets as the U.S. economy weakens.
"There's some slowdown in demand from the U.S., but demand from Asia is still solid,'' said Mitul Kotecha, head of foreign- exchange research at Calyon in London. "The stronger euro will become a growing burden for Europe, and that will imply slower growth for Europe as a whole.''
Rhodia SA, France's biggest specialty-chemicals maker, said May 7 that first-quarter profit fell 29 percent, hurt by the advance of the euro and increasing raw-materials costs. Chairman Jean-Pierre Clamadieu said currency effects may cut full-year earnings by 100 million euros.
While the euro has fallen 3 percent against the dollar after reaching a record $1.6019 on April 22, the European currency still is more than 6 percent higher since the start of the year. The euro traded at $1.5501 at 11:45 a.m. in Brussels, up 0.3 percent on the day.
Significant Retreat
'The significant retreat March exports reinforces belief that euro-zone exports are now being hit increasingly by the very strong euro and significantly softer domestic demand in key foreign markets,'' Howard Archer, chief European and U.K economist at Global Insight in London, said in a note to clients. "Even previously very resilient German exports and foreign orders appear to be faltering now.''
Shipments from Germany, Europe's largest economy, declined 1 percent in March, while those from France fell 2.8 percent, according to today's report.
Exports to the U.S., which dropped in 2007 for the first time in four years, increased 1 percent in the first two months of this year, while shipments to the U.K., the euro area's biggest market, advanced 5 percent, today's release showed.
The detailed data on trading partners, which are published with a one-month lag, also showed that exports to China jumped 21 percent in the January-February period, while those to Poland increased 24 percent and shipments to Russia rose 28 percent.
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