Economist

Richard Iley

Macroeconomics

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<p>Almost unnoticed given the focus on the superficially disappointing Q4 GDP data was <a href="https://www.bloomberg.com/news/articles/2018-01-26/u-s-goods-trade-gap-unexpectedly-widened-in-december" target="_blank">the news that the US goods trade deficit in December was the widest since August 2008.</a> At $71.6bn in December, the deficit has widened by over $8bn over the last year; an increase of comfortably more than 10%. </p>
<p>Looking at the underlying drivers of the deficit offers important insights into the US's macro-conjuncture and, in turn, asset allocation. With exports up 9.2% y/y in December, it is the US's surging…</p>
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Almost unnoticed given the focus on the superficially disappointing Q4 GDP data was the news that the US goods trade deficit in December was the widest since August 2008. At $71.6bn in December, the deficit has widened by over $8bn over the last year; an increase of comfortably more than 10%. 
Looking at the underlying drivers of the deficit offers important insights into the US's macro-conjuncture and, in turn, asset allocation. With exports up 9.2% y/y in December, it is the US's surging…


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