This morning's advanced GDP numbers from BEA show the US economy surging ahead at an annual rate of 4.8% for the 1st quarter of 2006 - compared to 1.% in the 4 quarter of 2005. Some of the biggest changes were increased auto purchases, greater investments in equipment and software and increased exports.
However, similar to last quarter, BEA is estimating that services trade will be down, based on the Jan and Feb trade numbers. Our intangibles trade surplus in Feb was down sharply, but that may have been due to a one-time payment of royalties for the Olympics. March trade figures will be out on May 12. We will be able to see then what really happened to intangibles trade in the 1st quarter.
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