Pantheon Macroeconomics - A widening core trade deficit is the inevitable consequence of a strengthening currency and faster growth than most of your trading partners. Falling oil prices have limited the headline damage by driving down net oil imports, but the downward trend in core exports since late 2014 has been steep and sustained, as our first chart shows. The deterioration meant that trade subtracted an average of 0.3 percentage points from GDP growth in the past three quarters.

U.S. | 25 May. 2016 Trade Deficit Set for April Rebound, but the Future Looks Brighter
A widening core trade deficit is the inevitable consequence of a strengthening currency and faster growth than most of your trading partners. Falling oil prices have limited the headline damage by driving down net oil imports, but the downward trend in core exports since late 2014 has been steep and sustained, as our first chart shows. The deterioration meant that trade subtracted an average of 0.3 percentage points from GDP growth in the past three quarters.

Sorry, but our website is best viewed on a device with a screen width greater than 320px. You can contact us at: info@pantheonmacro.com.

25 May. 2016 Trade Deficit Set for April Rebound, but the Future Looks Brighter

By Ian Shepherdson

A widening core trade deficit is the inevitable consequence of a strengthening currency and faster growth than most of your trading partners. Falling oil prices have limited the headline damage by driving down net oil imports, but the downward trend in core exports since late 2014 has been steep and sustained, as our first chart shows. The deterioration meant that trade subtracted an average of 0.3 percentage points from GDP growth in the past three quarters.

Posted: 25th May 2016 in 'U.S.'

This document is only available to subscribers of our U.S. Economic Research.

Request a complimentary trial or login here

Are you taking full advantage of our daily publications?

Pantheon Macroeconomics produce daily publications for U.S., Eurozone, Latin America, UK and Asia, as well as analysis on key data within a few minutes of their release. To activate a complimentary trial on any of these areas, please click here.

U.S. Economic ResearchEurozone Economic ResearchLatin America Economic ResearchUK Economic ResearchAsia Economic Research

« Go back to publications list, or Click here to register for a complimentary trial
Consistently Right

Access Key Enabled Navigation

Keywords for: U.S. | 25 May. 2016 Trade Deficit Set for April Rebound, but the Future Looks Brighter

export, exporters, dollar, home sales, trade, growth, ism, ism manufacturing, manufacturing, usd, currency, currencies, imports, exports, new home sales, pantheon macroeconomics, pantheon, macroeconomic, macroeconomics, independent analysis, independent macroeconomic research, independent, analysis, research, economic intelligence, economy, economic, economics, economists, , Ian Shepherdson, financial market, macro research, independent macro research