US current account deficit widens more than expected in Q1
WASHINGTON, June 24 (Reuters) - U.S. current account deficit widened more than expected in the first quarter, amid a shortfall in primary income, government data released on Wednesday showed.
The Commerce Department’s Bureau of Economic Analysis said the current account deficit, which measures the flow of goods, services, and investments into and out of the country, rose $5.8 billion, or 2.6 percent, to $226.8 billion in the last quarter.
Fourth-quarter figures were revised to show a deficit of $221.1 billion instead of the previously reported $190.7 billion. Economists polled by Reuters had forecast a current account deficit widening to $215 billion.
The current account deficit in the first quarter represented 2.9 percent of GDP, up from 2.8 percent in the October-December quarter. The deficit peaked at 6.3 percent in the third quarter of 2006. The current account deficit does not affect the dollar due to its status as a reserve currency.
The primary income balance fell to a deficit of $13.3 billion in the last quarter, after a surplus of $3.431 billion. This was partially offset by a narrowing of the trade deficit to $165.8 billion from $177.3 billion in the quarter spanning October to December.
Primary income revenue fell to $396.1 billion from $402.2 billion in the previous quarter. Primary income payments jumped to a record high of $409.1 billion from $398.8 billion in the fourth quarter.
