Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       

Blog Home
   Brian Wesbury
Chief Economist
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
X •  LinkedIn
  The trade deficit expanded to $50.2 billion in May
Posted Under: Data Watch • Trade
Supporting Image for Blog Post

Implications:  Oil was the driving force behind the large increase in the trade deficit in May, with higher oil prices, a greater volume of oil imports, and lower oil exports.  As a result, the trade deficit came in much higher than the consensus expected.  In fact, of the 73 economic groups that forecasted the trade deficit, none thought it would be this high.  It was also the largest trade deficit since late 2008.  However, oil prices were down in June so next month we should see at least a partial reversal of May's expansion in the trade deficit.  Beneath the headlines, the total volume of international trade in and out of the US – imports plus exports – hit an all-time high in May, finally fully recovering from the financial panic that hit cross-border business activity even more than domestic activity.  In other news this morning, weekly (same-store) chain store sales were up 5.5% last week versus the same week a year ago, continuing the strength these sales exhibited in June.  At present, it looks like real GDP grew at a 1.5% annual rate in Q2 but we are forecasting a substantial acceleration in the second half of the year.  Later this week we will be incorporating reports on retail sales, inventories, and industrial production into these forecasts.  

Click here to view the entire report.
Posted on Tuesday, July 12, 2011 @ 10:40 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.