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.”
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
