BERLIN, (Reuters) – German exports declined in August. It was the first drop in volume in 15 months. The unexpected decline came as supply chain concerns continued to bite Europe’s biggest economy.

Germany’s largest economy suffered a month-on-30 decline in exports seasonally adjusted to 113 Billion Euros ($130 Billion), 1.2% more than economists anticipated.

According to the Statistics Office, imports increased by 3.5%, reaching 100.1 billion euro, nearly twice the rate of growth forecasted.

It is the latest in a long line of economic indicators that shows how supply chain driven inflationary pressures affect exporters.

German industrial orders declined more than anticipated in August due to weaker foreign demand after two months of exceptionally high gains from major contracts.

Many industries, particularly Germany’s important car sector have suffered from shortages in intermediate goods such as semiconductors or other raw materials.

Comparable to last year, when the global economy was in deep economic distress due to the coronavirus epidemic, trade has seen a remarkable recovery. Exports to the United States increased 22.4%, and to China, 4.4%, respectively.

German Chambers of Commerce has increased its forecast of 2021 exports, anticipating that German companies would be able to sell 8 percent more overseas in 2021.

These headline figures did not reflect large regional differences. Exports to Britain fell by 15.1% last year. Imports from Britain fell by 7.9%. Year-on-year, trade with EU and third-country countries increased strongly.

($1 = 0.8662 euros)