German exports leap in May

Exports from Germany rose by 3.8% in May, much higher than previous expectations of only a 0.5% rise.

Analysts put the strong growth down to the weaker euro. The euro has been on a weak trend since April, when traders started to get nervous about the impact on the euro of the likely rejection of the EU Constitution by French voters.

The euro has slipped about 10% since the beginning of the year.

A surge in exports is welcome news, since private consumption remain depressed owing to high unemployment.

Strong exports also tend to create demand in other parts of Europe, by drawing in imports.

Imports rose by 5.9% in May.