US Import and Export data released today by the US Census Bureau were disapointing to many analysts and traders. The huge gap between imports and exports continues and even grew. However, both measures indicated records for a single-month. Mortgage rates have ticked higher on this news. Why?
There may be a silver-lining in the data that is positive for the US economy. An increase in imports and in exports, irrespective of the gap between the two, is a sign of increasing demand. Moreover, the increase in exports may actually help stimulate job growth, which would, in turn stimulate even more demand. Sometimes the real news lies deeper than than headline. Such is the case today.