Updated: 09-May-08 08:41 ET

March Trade Balance

Updated: 09-May-08 08:41 ET

Highlights

Key Factors

Big Picture

• The trade data get less market attention than they deserve.  Exports are booming, and the monthly data are an important part of overall GDP.  In fact, exports are now over three times as large as the housing component in GDP.  The improvement in the trade balance, particularly in the real (price adjusted) trade balance, has provided a significant boost to real GDP growth the past year.  Further improvement in the trade balance over the year ahead will provide important support to the economy.  Note: higher oil prices worsen the trade balance and GDP deflator, but do not directly impact the real trade balance or real GDP.