US Trade deficit: Some upside risk to Q1 GDP growth - Wells Fargo
|Data released today showed that the US trade deficit narrowed to $49.4 billion in February, due to a jump in aircraft exports and a subdued rise in imports noted analysts at Wells Fargo. They point out trade is likely to provide a boost to Q1 GDP growth.
Key Quotes:
“The trade deficit narrowed to $49.4 billion in February, as a jump in exports outweighed the subdued increase in imports. Export growth was strong (up 1.1%), with a considerable bounceback in civilian aircraft after a depressed January. But, this export category is likely to weaken in coming months.”
“Decreased production and a halt in Boeings’ 737 MAX deliveries should weigh on Q2 export growth.”
“Our current forecast looks for Q1 GDP to grow at an annualized pace of 1.8%. This report suggests upside risk to that estimate stemming from trade.”
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.