US Trade deficit: Some upside risk to Q1 GDP growth - Wells Fargo

Data released today showed that the US trade deficit narrowed to $49.4 billion in February, due to a jump in aircraft exports and a subdued rise in imports noted analysts at Wells Fargo. They point out trade is likely to provide a boost to Q1 GDP growth. 

Key Quotes: 

“The trade deficit narrowed to $49.4 billion in February, as a jump in exports outweighed the subdued increase in imports. Export growth was strong (up 1.1%), with a considerable bounceback in civilian aircraft after a depressed January. But, this export category is likely to weaken in coming months.”

“Decreased production and a halt in Boeings’ 737 MAX deliveries should weigh on Q2 export growth.”

“Our current forecast looks for Q1 GDP to grow at an annualized pace of 1.8%. This report suggests upside risk to that estimate stemming from trade.”