US Trade Deficit Narrows#
In January, the US trade deficit decreased more than analysts had predicted. This change was largely due to a rise in gold exports, which do not factor into Gross Domestic Product (GDP) calculations. A trade deficit occurs when a country imports more goods and services than it exports, which can impact economic growth.
Housing Market Surprises#
Housing starts, which refer to the number of new residential construction projects that have begun, increased by 7.2% during this period. This rise was unexpected, as many had forecasted a decline. Additionally, the previously reported December housing starts were revised downward, indicating a more complex picture of the housing market.
Jobless Claims Steady#
Initial jobless claims, which measure the number of people filing for unemployment benefits for the first time, fell slightly. This aligns with predictions and remains below the average levels seen in the latter half of 2025, suggesting a stable job market.
Goldman Sachs' GDP Estimate#
Goldman Sachs has adjusted its Q1 GDP tracking estimate to 3.3% on a quarter-over-quarter annualized basis. This figure takes into account the negative impact of rising oil prices in March, which was somewhat balanced by stronger-than-expected trade and housing data compared to earlier forecasts.