Trade Deficit Hints at Better GDP Data
Posted at 2:30 p.m. on Feb. 8
The Bureau of Economic Analysis reports that the December trade deficit shrank to $38.5 billion, down from $48.6 billion in November and far below the consensus forecast.
Bill McBride: “The trade deficit might have been skewed by the LA port strike that started in late November and ended in early December. This does suggest an upward revision to Q4 GDP.”
Matthew Yglesias: “I wouldn’t take that forecast to the bank all on its own, but the revised employment numbers from November and December also don’t seem consistent with a shrinking fourth quarter economy.”