Data released today showed the US trade deficit narrowed to $43K in November. Analysts at Wells Fargo, point out that net exports are going to provide a larger boost to Q4 growth than what they initially expected.
Key Quotes:
“Net exports should boost Q4 GDP, but if, as we expect, the recent decline in imports is due to importers pulling forward demand to get ahead of consumer-focused tariffs, it may be set to reverse and be a drag on GDP in coming quarters.”
“Total exports rose 0.7%, and November marked the third consecutive month that U.S. crude oil exports exceeded imports—a significant shift. American production of crude oil has mushroomed over the past decade, and a sustained gain in prices, stemming from rising tensions in the Middle East, could stimulate further investment. Higher oil prices therefore are unlikely to have a crippling effect on the U.S. economy today.”
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