The US current account deficit expanded to $226.8 billion in the first quarter, surpassing analyst expectations, according to data released by the Commerce Department’s Bureau of Economic Analysis on Wednesday.
The deficit, which tracks the flow of goods, services and investments in and out of the country, grew by $5.8 billion, or 2.6%, from the previous quarter. The fourth quarter deficit was revised to $221.1 billion from an earlier estimate of $190.7 billion.
Economists surveyed had predicted the deficit would reach $215.0 billion in the first quarter.
The first-quarter deficit represented 2.9% of gross domestic product, up from 2.8% in the fourth quarter. The deficit reached its highest level at 6.3% of GDP in the third quarter of 2006.
The primary income balance shifted to a deficit of $13.3 billion in the first quarter from a surplus of $3.431 billion in the prior quarter. This shift partially offset a narrowing in the trade deficit, which decreased to $165.8 billion from $177.3 billion in the fourth quarter.
Primary income receipts fell to $396.1 billion from $402.2 billion in the previous quarter. Primary income payments rose to a record $409.1 billion from $398.8 billion in the fourth quarter.
Source: Investing