Hopes for a measured recovery in Germany's economy are growing

Exports rose by 2.5% month-on-month to a seasonally adjusted 68.6bn euros, the Federal Statistics Office reported.

The surge in German exports contrasted with a 1.2% dip in imports during the month to 53.8bn euros.

Hopes for recovery in Europe's biggest economy are growing, with a recent report showing improved confidence among the country's business leaders.

Trade boost

A survey by Germany's Ifo research institute last month showed that its closely-watched business climate index was at a five-year high.

However, after growing strongly in the first quarter of 2005, Germany's economy slowed in the following three months. It is not expected to expand by more than 0.8% overall this year.

Alexander Koch, an economist with German bank HVB Group, said the strong September trade figures could boost economic growth in the third quarter.

"We also expect a strong growth contribution from foreign trade in the fourth quarter," Mr Koch said.

"It's possible the slightly negative effect of the domestic economy in the third quarter was more than over-compensated for by foreign trade."

HVB estimates that forthcoming third-quarter German growth figures, which are scheduled to be released on 15 November, will show that the economy expanded by 0.5%.