Highlights
The seasonally adjusted merchandise trade balance was surprisingly in the black to the tune of E0.51B at the end of last quarter.
The improvement over a revised E0.87B shortfall in August reflected a 6.6 percent monthly bounce in cash exports that more than saw off a modest 0.6 percent gain in imports.
On the year, nominal exports were well down in all the main industries. Worst hit was energy (35.1 percent) but consumer goods (15.2 percent), capital goods (14.1 percent) and intermediates (21.7 percent) were all sharply weaker too. Total exports declined 18.0 percent or 17.2 percent excluding energy.
The picture for imports, down 24.9 percent overall, was little different although consumer goods (minus 6.0 percent) held up relatively well. With domestic demand still disappointingly sluggish, Italy is likely to be particularly reliant upon its export industries for any significant growth in real GDP near-term.
Definition Merchandise trade balance measures the difference between imports and exports of both tangible goods and services. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade.
Why Investor's Care 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.