Eurozone exports rise in August, Brexit fears start to shrug-off

Trade surplus in the euro area rose during the month of August for the first time since April, a fresh sign that the U.K.’s decision to leave the European Union has started to erase off fears among investors and other market participants.

On a seasonally adjusted basis, exports of goods from the currency area rose by 2.3 percent from July, more than reversing a fall in that month, while imports rose by 0.9 percent, leading to an increase in the trade surplus to EUR23.3 billion (USD25.7 billion) from EUR20.8 billion in July. Without the seasonal adjustment, the surplus widened to EUR18.4 billion from EUR11.2 billion a year earlier.

However, policy makers have warned that it is too early to conclude the Brexit vote won’t have any impact on the eurozone’s recovery. Currency movements can take many months to affect flows of exports and imports, while there have been some recent signs that the prices paid by U.K. consumers are on the rise, WSJ reported.

Meanwhile, consumer-products giant Unilever PLC is raising its U.K. prices for everything from mayonnaise to shampoo, citing rising commodity costs in dollars, which coupled with the sharp decline in the pound have raised the cost of imported ingredients.