Widget Image
Follow PPD Social Media
Monday, May 27, 2024
HomeNewsEconomyU.S. Trade Deficit Shrinks by Largest Margin in 6 Years After 6-Year High Expansion

U.S. Trade Deficit Shrinks by Largest Margin in 6 Years After 6-Year High Expansion

US-Trade-Deficit-Reuters
US-Trade-Deficit-Reuters

Stacked shipping containers in U.S. trade port. (Photo: Reuters)

The Commerce Department on Wednesday said the U.S. trade deficit shrunk by 19.2 percent in April, the sharpest drop in more than six years. The West Coast port strike, which was resolved in February, caused big swings in the trade gap the first several months of the year.

The latest report sent equities even higher on Wall Street Wednesday. If the data holds up to scrutiny and future revisions, it will no doubt be a boon to U.S. economic growth, or second quarter gross domestic product (GDP). The trade deficit increased to its highest level in more than six years in March, slicing off a percentage point from first quarter GDP, which in at a negative 0.7 percent.

Still, it is feared the contraction will continue, technically sending the economy into another recession. Consequently, polling surveys find that the American people still believe the U.S. economy is in a recession, and pluralities believe it never truly came out of one since the Great Recession.

 

Written by

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

No comments

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

People's Pundit Daily
You have %%pigeonMeterAvailable%% free %%pigeonCopyPage%% remaining this month. Get unlimited access and support reader-funded, independent data journalism.

Start a 14-day free trial now. Pay later!

Start Trial