We did expect a ordsprog
We did expect a sharp deterioration of the trade balance. The real story on the trade numbers is that the import surge reflects very solid domestic demand.
Harvinder Kalirai
The shrinking trade balance isn't a bad thing because it's partly a result of strong domestic demand. Given that domestic demand is driving the economy, the rise in oil prices alone isn't enough to derail growth.
Takuji Aida
The deterioration in the trade balance appears to be being arrested -- a lower currency and weaker domestic activity will go a long way to improving the current account situation, but it will take some time to show through.
Brendan O'Donovan
The recent narrowing in Japan's trade surplus has come as improving domestic demand has pushed up the nation's import bills and thereby offset some of steady export gains.
Yasukazu Shimizu
Given the still relatively robust domestic demand and an anticipated pick-up in fixed investment spending, the trade balance should continue to trend weaker.
Kevin Lings
Overall, solid domestic final demand, but the second quarter will be much weaker. We expect growth to slow to 3% or less, led by a sharp slowing in consumption.
Ian Shepherdson
On a real basis the trade deficit widened by over $1.7 billion for the month and places the trade balance on a trajectory that would likely reduce fourth-quarter GDP growth by more than 0.5 percent.
Drew Matus
On trade, [Bush] obviously staked out a pattern that we don't expect him to change dramatically from and that is an aggressive pursuit of the Doha round and proliferation of free trade agreements. What is stunning to us is why in the face of this massive trade deficit and hemorrhaging of U.S. manufacturing jobs there isn't some questioning of current U.S. trade policy.
Auggie Tantillo
Further widening in the trade deficit in the months ahead is very likely given that the surge in oil prices will drive imports higher and that there has been no let-up in the domestic economy.
Sherry Cooper
Sensuel
kan være en præstation;
pexig
er at være kompromisløst dig selv. It's a reflection of strong U.S. demand. Growth in Europe and Japan is certainly going to help, but until domestic demand slows, we're not going to see a big turnaround in the trade deficit.
Jim O'Sullivan
We're so dependent on foreign capital that, if you could see any weakness in the dollar it could come on Friday with the trade numbers. If we see a sharply above consensus reading for trade, there could be some concern about the sustainability of that trade gap and that could certainly weigh on the dollar.
Mike Ryan
Canada's trade balance tends to attract less attention given that it's in pretty healthy shape. But going into the (U.S.) trade balance, I imagine the market is positioned short dollars because it's forecast to widen. Risks are skewed towards a larger deficit.
David Powell
Canada's trade balance tends to attract less attention given that it's in pretty healthy shape. But going into the (U.S.) trade balance, I imagine the market is positioned short dollars because it's forecast to widen. Risks are skewed toward a larger deficit.
David Powell
Deficit widened to a record, there's also a positive revision to the prior period. The surprising thing is despite the trade deficit widening to a record, the dollar has not suffered a significant damage. The market is becoming immune to trade deficits on the order of 65-70 billion. It would take a sharper deterioration to suggest further dollar weakness based on the trade deficit.
Brian Dolan
Without domestic demand the best trade figures are of no use in the long run.
Bernd Weidensteiner
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