| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | €-7.623B | €-7.766B | €-7.633B |
Highlights
The trade deficit was for the most part unchanged in June at minus 7.623 billion Euros from May's revised 7.633 billion, although it was higher by some two billion euros from the 5.667 billion deficit in June of last year. The second quarter deficit averaged 7.618 billion.
France exported 50.630 billion euros worth of goods and services in June, a decline of 1.6 percent from a year ago, while imports were 58.253 billion, an increase of 2.0 billion.
The main categories were only marginally changed in June, with the energy balance contracting by 100 million Euros along with the intermediate goods balance. Manufactured- and consumer goods balances each contracted by 300 million, while capital goods increased 100 million.
The trade report is rather thin on details, but the Bank of France provides current account data which showed a goods deficit of 7.4 billion Euros in June compared to a 6.6 billion deficit in May. Services according to the current account data registered a surplus of 5.5 billion Euros compared to 5.7 billion in May.
France exported 50.630 billion euros worth of goods and services in June, a decline of 1.6 percent from a year ago, while imports were 58.253 billion, an increase of 2.0 billion.
The main categories were only marginally changed in June, with the energy balance contracting by 100 million Euros along with the intermediate goods balance. Manufactured- and consumer goods balances each contracted by 300 million, while capital goods increased 100 million.
The trade report is rather thin on details, but the Bank of France provides current account data which showed a goods deficit of 7.4 billion Euros in June compared to a 6.6 billion deficit in May. Services according to the current account data registered a surplus of 5.5 billion Euros compared to 5.7 billion in May.
Definition
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.
Description
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. Given the size of the French economy, the euro can be sensitive to changes in the trade balance. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.
