Darn Deficit

The US had a staggering $51.4 billion trade deficit in March, the largest since 2008, and up from $35.9 billion in February. Thus Q1 GDP will be revised down from 0.2% to -0.2%. The reasons: the West Coast port dispute and the surging dollar. The three-month moving average gap, which reduces distortions from the strike, was $43.3 billion; slightly worse than the average 2014 deficit of $41.2. Watch this closely.