US: Goods trade deficit could decline $4 billion to $44.5 billion – BMO CM

According to the analysts at BMO Capital Markets, a sharp decrease in the advance goods trade deficit in February suggests the overall shortfall could decline $4 billion to $44.5 billion after touching five-year highs.

Key Quotes

“Goods imports retreated following big gains, while exports powered ahead for a third straight month, likely reflecting an improved global economy and less-mighty dollar. The advance report showed capital goods imports rising for a fifth straight month, suggesting that business investment is picking up after contracting last year. Trade may be a lesser headwind for the economy than initially feared.”