2017.12.1721:28:00UTC+00Eurozone Goods Trade Surplus Narrows Sharply in October

The eurozone trade surplus slimmed sharply in October, due to a larger rise in imports than in exports.

According to data from Eurostat, the bloc's statistics agency, the surplus stood at €18.9 billion in October 2017, from €19.2 billion in the same period in 2016.

Imports increased by 10.1 percent on a year over year basis to €168.9 billion, with exports growing 8.8 percent to €187.9 billion. For the January – October period this year, the surplus is running at €187.9 billion, from €213.8 billion over the same time span in 2016.

Without seasonal adjustment, the eurozone's trade surplus stood at €18.9 billion in October, down from €19.2 billion in the same month last year.

The goods surplus has been booming since the end of 2011 eurozone debt crisis, which has supported the eurozone's economic expansion.

Germany, the largest economy in the bloc, has by far the largest year to date surplus to countries outside of the European Union at €148.1 billion.

Trade flows can be volatile from month to month, even with seasonal adjustments.

However, the narrowing surplus might be an indication that the euro's gains against other major currencies in 2017 are pricing its goods out of some overseas markets. If the fall in exports is due to the euro's exchange rate, that headwind may ease in 2018.

The European Central Bank expects the eurozone economy to expand by 2.4 percent in 2016. It also improved its growth forecast for 2018 to 2.3 percent from 1.8 percent.