The U.S. trade deficit ticked up to $43.7 B
The U.S. trade deficit ticked up to $43.7 B from $43.5 (was $43.6) B in June, but a higher $46.4 B in May, versus a 5-year high of $48.8 B in January. The July deficit was $0.9 B narrower than indicated by the "advance" trade report, after a $0.1 B narrower June figure, with much higher exports, but also higher imports. Analysts still expect a Q2 GDP growth boost to 3.2% from 3.0%, but with a boost of $1 B for imports, alongside hikes of $4 B for factory inventories and $3 B for construction. Analysts expect Q3 GDP growth of 3.3% with a big $28 B contribution from net exports, with a flat (was -1%) growth rate for real exports after a 3.7% Q2 growth pace, and a 4% (was 5%) Q3 contraction rate for imports after a 1.7% (was 1.6%) Q2 growth pace. Analysts expect 2017 growth rates of 5% for exports and 6% for imports, following 2% declines for both in 2016, declines in 2015 of 5% for exports and 4% for imports, but gains of 4% for both in 2014. Analysts expect a current account deficit narrowing to $115.9 B in Q2 and $108 B in Q3 from $116.8 B in Q1. Analysts expect an annual current account gap of $452 B in 2017 that matches the expansion-high $452 B in 2016.