US: Trade balance likely to narrow to $48.7bn - Nomura

According to the Census Bureau’s advance goods trade balance report, US net exports of goods grew sharply as imports dropped unexpectedly while exports grew solidly, notes the research team at Nomura.

Key Quotes

“Reflecting these estimates, we forecast a sharp narrowing of the nominal trade balance to $48.7bn, from $57.6bn. We think the slowdown in goods imports in March was likely transitory. Incoming survey data on trade suggest steady momentum in import activity and domestic demand appears to be firm. However, we should closely monitor incoming data to discern any impact from changes to trade policies.”