French trade deficit widens unexpectedly in October as exports declined

Data from the French Customs showed Tuesday that France's trade deficit widened more than expected in October as exports declined though imports remained firm. Data showed that French trade deficit rose to EUR 5.20 billion from EUR 4.79 billion in September and EUR 4.48 billion a year ago. The deficit was wider than that of EUR 4.35 billion expected by economists.

Exports remained the main drag, falling 0.4 percent on a year-on-year basis, while imports grew 2.3 percent. Details of the report showed that aeronautical industry exports were unfavorable. Shipments fell 0.8 percent monthly in October after a 2 percent slump in September. Imports grew 0.3 percent, partly reversing a 0.6 percent decline in September.

The goods trade deficit widened to EUR 3.3 billion in October from EUR 2.8 billion in the preceding month. Meanwhile, the deficit on services trade dropped to EUR 0.1 billion from EUR 0.9 billion.

Separate data from the Bank of France showed the French current account gap narrowed in October from a month ago. The current account deficit fell to EUR 3.5 billion in October from EUR 3.7 billion in September.

The capital account balance came in at a shortfall of EUR 0.1 billion in October, after remained balanced in September. The financial account also turned to a deficit of EUR 15.6 billion from a surplus of EUR 15.5 billion.

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