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GDP, Pending home sales, Trade, Chem index, Erdogan on rates

Summary:
Decelerating faster than previously reported: Weakness in imports may be confirming weak US consumer demand: Highlights January’s trade deficit came in at a much lower-than-expected .1 billion as exports rose a solid 0.9 percent to 7.3 billion while imports fell a sharp 2.6 percent to 8.5 billion. The goods deficit is the surprise in the report, at a still steep .3 billion but 10.1 percent lower than December’s outsized .5 billion gap. The nations surplus on services exports rose 2.4 percent to .1 billion. Details show a very welcome .3 billion rise in food exports, which had been shrinking in prior months, as well as a .2 billion gain for vehicle exports. Imports of capital goods fell .0 billion, which is good for the deficit but a negative for

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Decelerating faster than previously reported:

GDP, Pending home sales, Trade, Chem index, Erdogan on rates

GDP, Pending home sales, Trade, Chem index, Erdogan on rates

Weakness in imports may be confirming weak US consumer demand:

GDP, Pending home sales, Trade, Chem index, Erdogan on rates

Highlights

January’s trade deficit came in at a much lower-than-expected $51.1 billion as exports rose a solid 0.9 percent to $207.3 billion while imports fell a sharp 2.6 percent to $258.5 billion. The goods deficit is the surprise in the report, at a still steep $73.3 billion but 10.1 percent lower than December’s outsized $81.5 billion gap. The nations surplus on services exports rose 2.4 percent to $22.1 billion.

Details show a very welcome $1.3 billion rise in food exports, which had been shrinking in prior months, as well as a $1.2 billion gain for vehicle exports. Imports of capital goods fell $3.0 billion, which is good for the deficit but a negative for business investment, while imports of industrial supplies, reflecting a decline for oil, fell $2.3 billion.

Country data show another deep deficit with China, at $34.5 billion but a little less steep than $36.8 billion in December, with deficits with all other major trading partners likewise narrowing.

This reports opens first-quarter net exports on a favorable footing which in turn should lift early estimates for first-quarter GDP.

GDP, Pending home sales, Trade, Chem index, Erdogan on rates

GDP, Pending home sales, Trade, Chem index, Erdogan on rates

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WARREN MOSLER
Warren Mosler is an American economist and theorist, and one of the leading voices in the field of Modern Monetary Theory (MMT). Presently, Warren resides on St. Croix, in the US Virgin Islands, where he owns and operates Valance Co., Inc.

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