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 in goods and services shrank to $43.7 billion in April
Posted Under: Data Watch • Trade
Supporting Image for Blog Post

Implications:  Record exports and lower imports sharply reduced the trade deficit in April.  This was largely due to two factors: (1) a drop in imports of autos and auto parts, primarily due to recent disasters in Japan, and (2) a change in petroleum flows, with the US increasing its exports and reducing its imports in the face of higher prices.  Today's trade data are the flip side of some recent weaker data on domestic auto production and auto sales and will partially offset the negative impact on GDP.  As a result, we are raising our forecast for real GDP growth in the second quarter from a 1.5% annual rate to 2%, with much faster growth in the second half of the year.  In addition, revisions to trade data suggest that real GDP growth in the first quarter will be revised up to a 2.2% annualized growth rate from 1.8%.  Despite the reduction in the trade deficit in April, total trade volumes continued to rise.  Exports plus imports are now only 0.7% below the record peak of mid-2008.  Exports are already at a record high and up substantially from a year ago.  In other news this morning, initial claims for unemployment insurance increased 1,000 last week to 427,000.  Continuing claims for regular state benefits declined 71,000 to 3.68 million.  These figures suggest a rebound in payroll job creation in June after the lull in May.

Click here to view the entire report.
Posted on Thursday, June 9, 2011 @ 10:45 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.