The seasonally adjusted merchandise trade balance was in a €2.7 billion surplus in May, up from a slightly smaller revised €1.4 billion in April but only a 2-month high.

The headline improvement masked both weaker exports, which fell 0.3 percent on the month for a third straight decline, and imports, which were off 3.0 percent. However, the drop in the former was mainly attributable to energy which saw an 8.7 percent slump and without which exports would have been flat. Capital goods (minus 2.6 percent) also posted a loss but there were gains in intermediates (0.1 percent) and, in particular, consumer goods (2.3 percent). Overall sales to the EU dropped 1.7 percent but increased 1.2 percent to the rest of the world.

Compared with a year ago, exports were up 0.9 percent while imports were down 7.6 percent.

The merchandise trade balance measures the difference between imports and exports of goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness.

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets.

Separate reports are published for external and internal EU trade. The extra-EU trade data are compiled on the basis of customs declarations with non-EU countries. The intra-EU trade data (Intrastat) are derived from surveys and provide statistics on trade between Italy and other EU member states. The data are available monthly. World trade data are available within one month after the reference month while intra-EU trade data are available within 7 weeks after the reference month.