Deficit in Q2 2.4% of GDP vs. 2.6% in Q1
The Bureau of Economic Analysis (BEA) reported the U.S. current-account deficit narrowed by $8.0 billion in the second quarter (Q2) 2019, or 5.9% to $128.2 billion. The Q2 deficit was 2.4% of current dollar gross domestic product (GD), down from 2.6% in Q1.
The forecasts ranged from a low of $-135.2 billion to a high of $-118.0 billion. The consensus forecast was looking for $-125.8 billion.
The U.S. current account deficit is the combined balances on trade in goods and services and income flows between U.S. residents and residents of other countries.
The narrowing of the current account deficit in Q2 largely reflects an increasing surplus on primary income, the BEA said.
Exports of goods and services to — and income received from — foreign residents was up $2.1 billion to $943.0 billion. Imports of goods and services from — and income paid to — foreign residents fell $5.9 billion to $1.07 trillion.
The U.S. current-account deficit was revised for Q1 2019 to $136.2 billion.