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UPDATE 1-Eurozone recovery supported by jump in exports

Published 08/17/2009, 07:01 AM
Updated 08/17/2009, 07:06 AM
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* 4.6 bln eur trade surplus in June is third in a row

* Exports underpin economy in Q2

* June exports almost 8 percent higher than May

BRUSSELS, Aug 17 (Reuters) - The euro zone posted its third successive monthly trade surplus in June as exports jumped, according to data released on Monday, adding to evidence that foreign demand is helping the area to emerging from recession.

The 16 countries that use the euro currency recorded a surplus of 4.6 billion euros ($6.5 billion) in June, according to the European Union's statistics office Eurostat, as exports climbed by almost 8 percent on the previous month.

June was the third successive month when exports exceeded imports, indicating that global demand is pulling the region out of recession.

It comes after a return to growth in Germany and France buoyed the euro zone economy in the second quarter. [ID:nLD484296]

Data released earlier this month showed manufacturing orders in the bloc's export king Germany rose at their fastest pace in two years in June, boosted by strong foreign demand.

Economists gave the figures a guarded welcome. "We've seen some pick up come through in global activity which is feeding in to a pick up in euro zone activity," said David Page at Investec in London.

"It is encouraging that there are some signs that the export front is starting to ease a bit," said Colin Ellis, European economist at Daiwa Securities SMBC. "But I think I'd be cautious about jumping on the bandwagon too much."

The trade surplus compares with a balanced result in June last year and a surplus of 2.1 billion euros in May 2009.

However, year-to-date surpluses with key trading partners were still sharply lower than a year ago.

"Fundamentally the euro area's two biggest markets are still the UK and the US and until demand recovers there I don't think you are going to see a strong recovery," said Ellis. (Reporting by David Brunnstrom and John O'Donnell; additional reporting by Christina Fincher and Kylie MacLellan; Editing by Toby Chopra)

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