The currency bloc - which includes Germany, the world's largest exporter - reported exports of euro117.2 billion during the summer vacation month when business is often slow, 2 per cent lower than a year ago.

Eurostat did not explain what caused exports to fall. But the data it provides for trade from Jan to Jul this year show imports - especially the higher cost of imported oil and gas - outpacing exports.

The euro area has racked up a trade deficit of euro14.7 billion for the first seven months of the year, a major drop from the surplus it reported for the same months last year.

Although euro nations have managed to sell more 7 per cent more from Jan to Jul - thanks to higher demand for their goods from booming China and Russia - they are also importing 11 per cent more.

That import surge is largely a result of the far higher price Europeans are paying for oil and natural gas this year, with the euro energy import bill climbing 43 per cent as oil hit record price levels over the summer. The value of Russian imports - mostly energy - climbed by a quarter.

But the strength of the euro currency against the US dollar and Japanese yen this year has also eaten into better sales to other parts of the world.

Euro exports to the US - its second largest trade partner after Britain - fell 4 per cent from Jan to Jul while sales to Japan were down 3 per cent. -- AP