Trade Deficit Shows Weak Q1 Contraction
The trade deficit in March reached a 6 year high which makes many feel the economy contracted in the first quarter of the year. Yet the general feeling is that the economy rebounded in April with stronger service sector activity. The issues faced in the first quarter are not present in the second quarter, giving people a positive perspective on GDP.
The trade deficit moved higher by 43% to over $53 billion in March of 2015. The jump was 9 year high with the number itself being a 6 year high. West Coast ports were stalled with trade talks until just recently, creating the surge. US Stocks, Treasuries, and the Dollar all fell today.
Some of the drags in the first quarter included falling oil prices, spending cuts by oil companies, bad weather, and a strong dollar. The GDP in the first quarter was reported initially at 0.2%. But the most recent reports on the quarter are predicting an even weaker quarter when the next revision is released. Economists are looking for a 0.4% contraction.
US trade deficit explodes to $51.4bn; swells to 6-year high