WASHINGTON (MarketWatch) - A handful of economists sharply revised upward their estimates for second-quarter gross domestic product on Friday, with some even predicting GDP could turn out to be positive in the April-June quarter.
The trade deficit in May - released earlier in the day by the government -- surprised economists by narrowing to $26.0 billion, the lowest level in almost ten years. Exports rose smartly in the month, while imports declined a bit.
The economic team at Macroeconomic Advisers, which tracks GDP growth after every major indicator, has raised its forecast for second quarter to a small 0.2% decline, up from its most recent forecast of a steep 2.0% drop.
Economists at RDQ Economics said that they see "a significant possibility" that real GDP could actually grow slightly in the second quarter.
The economy contracted at a 5.5% pace in the first quarter.
But many economists continued to be leery of calling for positive growth in the second quarter. Many noted that stores are still allowing their shelves to empty and are not re-ordering goods.
http://www.marketwatch.com/story/q2-gdp-could-be-positive-due-to-trade-data
The trade deficit in May - released earlier in the day by the government -- surprised economists by narrowing to $26.0 billion, the lowest level in almost ten years. Exports rose smartly in the month, while imports declined a bit.
The economic team at Macroeconomic Advisers, which tracks GDP growth after every major indicator, has raised its forecast for second quarter to a small 0.2% decline, up from its most recent forecast of a steep 2.0% drop.
Economists at RDQ Economics said that they see "a significant possibility" that real GDP could actually grow slightly in the second quarter.
The economy contracted at a 5.5% pace in the first quarter.
But many economists continued to be leery of calling for positive growth in the second quarter. Many noted that stores are still allowing their shelves to empty and are not re-ordering goods.
http://www.marketwatch.com/story/q2-gdp-could-be-positive-due-to-trade-data
