Further widening in the trade deficit in the months ahead is very likely given that the surge in oil prices will drive imports higher and that there has been no let-up in the domestic economy.
This report will not change the Fed's view on the inflation outlook -- they will keep rates low for still some months to come.
High energy prices keep on working their way through the system. The risks remain skewed to a mild up-creep in core inflation during the months ahead, which will keep the Fed on track for another rate hike in March and likely in May.
The modest downtrend in order growth is pointing to some moderation in the months ahead,
About six months ago, there was really no concern, and I think it makes sense to be concerned.