US Current Account Deficit Widens in Q3

The U.S. 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 on Wednesday the current account gap, which measures the flow of goods, services and investments into and out of the country, rose 1.9 percent to $100.3 billion from a revised $98.4 billion deficit in the second quarter.

Economists polled by Reuters had forecast the deficit narrowing to $97.5 billion from a previously reported $98.5 billion 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 U.S. 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.

via Reuters

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