A surge in imports caused an unexpected cut in Germany's trade surplus for July, according to figures released by the federal statistics office Tuesday, in further evidence of an economic slowdown in Europe's largest economy.

Imports rose 16 per cent to 73.2 billion euros (103 billion dollars), with imports from outside the European Union (EU) soaring 20 per cent to 26.2 billion euros.

Germany's trade surplus fell to 13.9 billion euros, from a surplus of 18.1 billion in July 2007.

In June, the trade balance was 19.9 billion euros in surplus.

Exports rose at the slower pace of 7 per cent to 87.1 billion euros in July.

On a seasonally and calendar-adjusted basis, July exports fell 1.7 per cent from June, while exports rose 7.4 per cent.

The disappointing trade data follow a decline in manufacturing orders in July and a contraction in gross domestic product of 0.5 per cent in the second quarter.