The U.S. current account deficit, a measure of the nation’s trade and financial flows with foreign countries, widened to $123.14 billion in the second quarter, the Commerce Department said Tuesday.
Economists surveyed by The Wall Street Journal had forecast a deficit of $118.0 billion.
The $9.6 billion widening from the first quarter reflected an increase in the secondary-income deficit, a decrease in the surplus on primary income and an increase in the goods-trade deficit, the government agency said.
The deficit increased to 2.6% of current-dollar gross domestic product, versus 2.4% of nominal GDP in the first quarter.
The current account tracks movements of goods and services across borders as well as income flows from investments and various other transfers such as remittances. The U.S. has run persistent trade deficits for decades by importing more than it exports.
Source: Dow Jones