US trade gap gets bigger

City A.M. Reporter
THE US trade deficit widened in April as a rise in imports offset a rebound in exports, suggesting trade could drag on GDP data in quarter two even as demand holds up.

The Commerce Department said yesterday the trade gap increased to $40.3bn from $37.1bn in March, less than economists’ expectations for a rise to $41bn but a less than booming indicator of the wider economy’s strength.

The data prompted some economists to trim their second-quarter GDP estimates. Morgan Stanley economists cut their forecast to 1.4 per cent from 1.6 per cent.