US: Drag to GDP growth from trade likely increased in Q4 - Wells Fargo
|Analysts at Wells Fargo, point out that statistical payback contributed to the sharp increase in the trade deficit in December. They see that sluggish growth in the rest of the world is weighing on US export growth.
Key Quotes:
“The U.S trade deficit shot up from $50.3 billion in November to $59.8 billion in December, the largest deficit in 10 years.”
“The increase in the red ink in the nation’s trade accounts represents statistical payback, at least in part, for the marked narrowing that had occurred in the previous month. Specifically, the trade deficit narrowed $6.0 billion in November.”
“Preliminary data indicated that net exports sliced 0.2 percentage point from real GDP growth in Q4. These revised trade data show that the headwinds to GDP growth from trade likely increased to 0.3 percentage point.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.