Q2 GDP hope remains as a significant surge in exports of automotive vehicles, parts, and engines stalled the collapsing trade balance for a very modest beat (still a $44.4 billion deficit). This is the 2nd biggest trade deficit since November 2012 as imports dropped $0.7bn and exports rose $2.0 billion. Saudi Arabia, interestingly, was largely responsible for the improvement in the trade balance as the deficit dropped from $4bn to $2.3bn. Hope springs eternal but the deficit is still considerably more of a drag on Q2 GDP than it was on Q1 GDP. Initial jobless claims continue to go nowhere but missed for the 5th week in a row).
Trade deficit improved marginally but remains a big drag on Q2 GDP..
[6]
Saudi Arabia's Trade Balance improved by the most since Nov 2011... to its lowest deficit in 17 months...
[7]
But initial jobless claims limped higher and missed for 5th week in a row...
[8]
Charts: Bloomberg
