Euro-Zones Swings to Trade Deficit in September

The euro-zone swung to a trade deficit of 5.6 billion euros ($7.1 billion) in Sept. from a 2.9B euro surplus last year as euro nations imported far more than they sold abroad, EU statistics agency Eurostat said. Imports to 15 countries that share the euro rose 16% in Sept. from a year ago. Exports grew just 9% as global demand for European goods calmed, partly as a result of the high value of the euro against the U.S. dollar and the British pound. Slowing exports from Germany, the world's largest exporter and Europe's biggest economy, tipped the country into recession in the 3rd-Q. Exports of high-value machinery and cars to emerging economies have fueled German economic growth in recent years, compensating for sluggish household spending, but are now being hit by the financial crisis. The euro-zone trade deficit for the year to date, from January to August, now stands at 29.6 billion euros ($37.52 billion), swinging into the red from a trade surplus in the same period last year as oil prices soared and exports slowed. Euro exports to the U.S. dropped 5% from January to August from a year ago, Eurostat said. Exchange rates hiked cost of French champagne and German cars for American shoppers. And exports to the currency area's biggest customer, Britain, did not grow at all for the first 8 months of the year. Imports from Russia, mainly oil and natural gas, climbed by a quarter over the same timeframe. Eurostat revised down its August trade figures, saying total euro-zone exports dropped 3% in the month from a year ago. It originally reported a 1st estimate of 2%. August imports also grew less than expected, at 6% instead of 7%.