WASHINGTON, Jan 14 (Reuters) – The U.S. current account deficit narrowed sharply in the third quarter as tariffs weighed on imports and primary \u200bincome surged.<\/p>\n
The Commerce Department’s Bureau of Economic Analysis said on \u200cWednesday the current account deficit, which measures the flow of goods, services and investments into and out of the country, contracted by $22.8 billion, or 9.2%, to $226.4 billion, the lowest level since the third \u200cquarter of 2023.<\/p>\n
Sign up here.<\/a><\/p>\n Economists polled by Reuters had forecast the \u200bcurrent account deficit shrinking to $238.4 billion. The report was delayed by the 43-day shutdown of the government.<\/p>\n The deficit represented 2.9% of \u200dgross domestic product, the smallest since the first quarter of 2020 and down from 3.3% in the second quarter. It peaked at 6.3% in the \u2060third quarter of 2006. President Donald Trump’s sweeping tariffs have \u200dled to an ebb in the flow of imports, helping to narrow the \u200ctrade \u200cdeficit.<\/p>\n Imports of goods decreased $5.0 billion to $815.4 billion in the third quarter, pulled down by a decline in consumer goods. But nonmonetary gold imports increased. Imports of services increased $3.1 billion to $225.0 billion.<\/p>\n Goods \u2060exports fell $1.9 billion \u2060to $548.0 billion, weighed \u200bdown by nonmonetary gold, though exports of capital and consumer goods increased. Exports of services increased $11.7 billion to $314.2 billion.<\/p>\n The goods trade deficit narrowed to $267.4 \u200dbillion from $270.4 billion in the prior quarter.<\/p>\n Receipts of primary income increased $16.3 billion to $395.2 billion, led by a rise in direct investment income. Payments of primary income \u200badvanced $5.3 billion to $390.0 billion.<\/p>\n Receipts of secondary \u200dincome decreased $2.0 billion to $44.4 billion. Payments of secondary income declined $2.1 billion to $97.9 billion as \u200bgeneral government transfers decreased.<\/p>\n Reporting by Lucia Mutikani; Editing by Andrea Ricci<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n