(MENAFN) The eurozone recorded a mere €1 billion ($1.1 billion) foreign trade surplus in August, sharply down from July’s robust €12.7 billion ($14.8 billion) surplus, according to data released Thursday by the region’s statistical agency, Eurostat.

This sharp decline fell significantly short of market forecasts, which had anticipated a €6.9 billion surplus. Eurostat attributed the slump primarily to a steep drop in the machinery and vehicles surplus, which plunged from €18 billion to just €7.8 billion.

Eurozone exports to global markets shrank 4.7% year-on-year to €205.9 billion in August, while imports also contracted by 3.8% to €204.9 billion.

In contrast, the broader European Union (EU) reported a foreign trade deficit of €5.8 billion during the same month.

The United States remained the largest destination for EU exports, though shipments fell sharply by 22.2% year-on-year to €32.9 billion. Exports to China decreased by 11.3% to €14.2 billion, and trade with the UK slipped 1.2% to €25.1 billion.

China emerged as the EU’s largest importer in August, accounting for €43 billion in purchases—a 7.1% year-on-year decline. Imports from Türkiye also dropped 4.1%, totaling €7.2 billion.

For clarity, the eurozone, also known as the EA20, comprises countries using the euro as their currency, while the EU27 encompasses all member states of the European Union.

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