Trade Winds Signal Weaker Growth

The trade deficit grew to $63.9 billion in March, which could cause the revised figure for first-quarter GDP to fall below 1%

The weak 1.3% increase in first-quarter U.S. gross domestic product looks as if it could get even weaker still, and fall below what market pros call the "1-handle." A government report released on May 10 that showed a sharp increase in the U.S. trade deficit for March indicates that the lean preliminary reading for first-quarter GDP may well be knocked below the 1% line in its next revision, with a gain we at Action Economics now peg at 0.9%.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.