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June 28, 2017 | Trade Deficit Narrows as Exports Rise and Imports Drop: 2nd Quarter Trade Impact Still Negative

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

The trade deficit narrowed from -$67.138 billion to -$65.879 billion in May as exports rose 0.4% and imports fell 0.4%.

Nonetheless, for the second quarter, the Census Department International Trade in Goods report shows the balance of trade (exports minus imports) for the quarter is still negative.

In March, the balance of trade was -$64,923. For the quarter balance of trade is down 1.5%, about 0.75% per month on average by my calculation but footnote 2 states “Data are presented on a Census basis. The information needed to convert to a balance of payment basis is not available.”

International Trade in Goods

Ignoring the footnote, the second quarter balance of trade appears to be slightly negative. This will not impact GDP much.

Mike “Mish” Shedlock

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June 28th, 2017

Posted In: Mish Talk

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