GERMAN imports posted their steepest drop in almost two years in October after a strong rise the previous month, while exports also fell, but economists remained upbeat about the prospects for Europe’s largest economy.

    Seasonally-adjusted data from the Federal Statistics Office showed imports declining by 3.1 percent on the month, undershooting by far a consensus forecast for a 1.5 percent decrease. It was the sharpest fall since November 2012.

    Exports also dropped by 0.5 percent on the month, though that was a better reading than the 1.5 percent decline that a Reuters poll had forecast.

    “The weak imports are on the one hand a sign of weak domestic demand but on the other hand they are a consequence of the slide in oil prices,” said Christian Schulz, economist at Berenberg Bank.

    On an unadjusted basis, exports rose to a record high of 103.9 billion euros (US$135 billion) while imports also climbed to their highest level in two years. But Schulz said foreign trade should nonetheless provide impetus in the fourth quarter, adding that important markets like the United States and the United Kingdom were growing strongly while demand in the eurozone had also stabilized.(SD-Agencies)