France’s trade deficit narrows in September

CAPTION : New Peugeot and Citroen automobiles await transport outside the PSA Peugeot Citroen factory in Poissy, near Paris, France - French car sales jumped 20 percent in October, the sixth consecutive monthly increase, as demand for small cars was helped by government incentives. Photographer: Antoine Antoniol/Bloomberg

France’s trade deficit narrowed in September more than economists forecast as exports rebounded, led by deliveries of Airbus planes, cars, chemicals and metals.

The deficit shrank to 1.76 billion euros (2.6 billion) from a revised 2.2 billion euros in August, the Trade Ministry said today. Economists expected a deficit of 3 billion euros, according to the median of 8 forecasts in a Bloomberg News survey.

“France’s trade balance benefited from the improvement in the car industry and the pickup in global trade,” Finance Minister Christine Lagarde and Trade Minister Anne-Marie Idrac said in a joint statement.

France’s trade deficit narrowed to 4.6 billion euros in the third quarter from 10.1 billion euros in the previous three months as exports rebounded, helped by government stimulus packages such as incentives to buy new cars, while imports of energy such as oil dropped.

Exports rose to 29.1 billion euros in September from 28.5 billion euros in August, today’s report showed. Imports rose to 30.9 billion euros from a four-year low of 30.6 billion euros in August.

Airbus SAS, the world’s largest plane maker, delivered 22 aircraft worth 1.34 billion euros in September, compared with 15 planes worth 830 million euros in August.