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Goods Deficit Circa 4% GDP With Mixed Demand Signs

US DATA
  • The advance goods trade deficit surprisingly widened in February to -$91.6B (cons -90) from $91.5B, as exports (-3.8% M/M) fell by more than imports (-2.3% M/M).
  • It left the balance at circa -4% GDP on a three-month annualized basis, whilst the 12-month rolling average continued to narrow slightly to -4.3% GDP.
  • Mixed domestic demand implications within imports: consumer goods fell back after two monthly increases had bucked the recent downward trend, but capital goods edged higher in an encouraging sign compared to recent declines in industrial production.

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