Current Account Deficit At Low End Of Expectations For The Second Quarter

The nation's current account deficit came in at the low end of expectations in the second quarter, at $109.7 billion vs a revised $118.3 billion in the first quarter. The narrowing is concentrated in the trade gap which narrowed $4.3 billion in the quarter on improvement in the goods deficit and continuing gains in the service surplus. Balances on income also improved. The gap relative to GDP came in at a manageable 2.5 percent vs 2.7 and 2.3 percent in the prior two quarters.

Recent History Of This Indicator: The current account deficit is expected to hold little changed at $113.5 billion in the second quarter vs $113.3 billion in the first quarter. A strengthening in the nation's surplus on service exports helped hold down the first-quarter deficit. The gap relative to GDP in the first quarter was a manageable 2.6 percent.

Definition: The current account measures the United States' international trade balance in goods, services, and unilateral transfers on a quarterly basis. The levels of exports, imports and the current account indicate trends in foreign trade.