German's exports expected to decline in May but gradually improving

German's trade balance data for May is scheduled to released today.

Despite tentative signs of improvement in global trade following the weak Q1, there is still considerable uncertainty regarding the strength of global trade, says Societe Generale. 

According to Societe Generale, "In May, the German trade surplus to have amounted to €20.4bn, down from €21.8bn in April. Exports are expected to have decreased by 0.5% mom and imports are expected to have increased by 0.5% mom."

The fall in exports reflect more a correction for the three strong previous months, with the underlying trend still on the rise. Exports to the US and the UK in particular have been on the rise for some time. Imports are expected to have increased due to increase in domestic demand.