German's trade balance likely improved in September

German's trade balance data for September is due today. The trade balance data of the economy printed €15.4bln in previous month is likely to improve further as both exports and imports data on a monthly basis are falling. The trade surplus of the economy is likely to reach €23.5bn in September, estimates Societe Generale. The bank suspects, the poor performance of  factory orders and industrial production may put some downside risk to their forecast.

"While the global trade dynamics continue to deteriorate with headwinds from Asia, German exports are likely to continue benefitting from relatively resilient demand from the rest of the euro area, the UK and the US", added Societe Generale. 

Recent data on the exports destination indicates a sign of stabilisation in exports to these countries, and even to China. Whereas, the loosing momentums in the Asian countries are likely to exist for some more time.