U.S. Trade Gap Narrows, Brightening Growth Outlook

The trade gap fell more than 22% during the month, to $34.2 billion from $44.1 billion, the Commerce Department said.

Exports notched their sharpest rise since September 2012, hitting their highest level, adjusted for inflation, on record.

Imports fell in part because Americans bought far fewer foreign-made cellphones and other consumer goods.



Original content +Bob DeMarco , All American Investor

Deja Vu Stagflation and the Savings Rate

Real disposable incomes (inflation-adjusted and after taxes) increased 0.1%, matching December with the lowest in nine months. A puny gain for sure and a possible sign that it could be negative next month. A sign of Stagflation?

Real (inflation-adjusted) consumer spending growth slowed to 0.2%, the weakest gain since August. Spending had risen 0.3% in January. Another potential bad sign.

The Fed could soon be facing both accelerating inflation and a slowing economy. And, this is my expectation.

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