WASHINGTON: The US current account deficit unexpectedly rose in the third quarter as an increase in exports was offset by a rewidening of the secondary income shortfall.
The Commerce Department said yesterday the current account gap, which measures the flow of goods, services and investments into and out of the country, rose 1.9 percent to $100.3bn from a revised $98.4bn deficit in the second quarter.
Economists polled had forecast the deficit narrowing to $97.5bn from a previously reported $98.5bn shortfall in the April-June quarter. The current account deficit represented 2.3 percent of gross domestic product, unchanged from the second quarter. The deficit had declined in recent quarters as the US ramped up domestic energy production, which has reduced its petroleum import bill. With crude oil prices at 5-1/2 year lows, the current account gap is expected to narrow in the coming quarters.
Goods and services exports increased 0.9 percent to $592bn in the third quarter, while imports slipped 0.2 percent to $716.3bn.
The surplus on primary income rose to $59bn in the third quarter from $54.8bn in the prior quarter.
The deficit on secondary income increased to $34.9bn from $22bn in the second quarter. Secondary income receipts fell to $27.8bn from $40.1bn. Secondary income receipts had been boosted by fines and penalties paid to the US government by foreign entities.
Reuters
