What is it?
Simply put, the Trade Balance is the dollar value of exports minus the dollar value of imports. A trade surplus, of course, is where exports exceed imports. A trade deficit, such as is the current situation in the US, is where imports exceed exports.
Imports are thought to drag on US manufacturing growth and to put extra competitive pressure on US producers. Exports tend to boost US production.
The Trade Report is released by the Commerce Department's Bureau of Economic Analysis. The report is rarely seen as important by market players. The information in the report is considered dated, except for the net exports component.
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