Euro area current account surplus slips in June

The euro area's current account surplus shrank in June amid a sharp drop in the primary income balance and a worsening on that for secondary income.

In seasonally adjusted terms, the surplus declined from €30.5bn to €21.2bn, according to the European Central Bank.

On a 12-month basis, the accumulated current account surplus stood at €336.5bn, which was equivalent to 3.1% of gross domestic product, down from 3.5% in the month before.

Less income from investments made overseas saw the surplus on the primary income balance fall from €11.3bn to €4.6bn.

Meanwhile, the secondary income balance, which tracks current transfers, declined from -€10.1bn to -€13.0bn.

In parallel, the surplus on trade in goods improved from €26.6bn to €27.4bn and that for services declined from €2.7bn to €2.2bn.