Current-account deficit widens in US
The second-quarter current-account deficit represented 2.6% of GDP, the largest since the first quarter of 2016
Washington — The US current-account deficit jumped to its highest level since 2008 in the second quarter, amid a decline in both secondary and primary income.
The commerce department said on Tuesday that the current-account deficit, which measures the flow of goods, services and investments into and out of the country, increased to $123.1bn from a downwardly revised $113.5bn in the first quarter.
That was the highest level since the fourth quarter of 2008.
Economists polled by Reuters had forecast that the current-account deficit would slip to $115.1bn from a previously reported $116.8bn shortfall.
The second-quarter current-account deficit represented 2.6% of GDP, the largest since the first quarter of 2016, up from 2.4% in the first quarter.
The current-account deficit has dropped from a record high of 6.3% of GDP in the fourth quarter of 2005 as rising domestic oil production and lower global oil prices curbed the import bill.
In the second quarter, the surplus on primary income — which includes investment income such as dividends, and employee compensation — decreased by $2.9 billion.
The deficit on secondary income, US government grants, pensions, fines and penalties and worker remittances surged $7.5bn in the second quarter.