MW: U.S. current-account deficit falls to $117.4 bln
By Jeffry Bartash
WASHINGTON (MarketWatch) - The U.S. current account deficit narrowed to $117.4 billion in the second quarter from a revised $133.6 billion in the first quarter, the Commerce Department said Tuesday. The reduction stemmed from a decline in the goods deficit - falling oil prices were a key factor - and a larger surplus in income payments such as U.S. earnings on investments abroad. The surplus on income rose to $55.5 billion from $47.4 billion. Net financial inflows, meanwhile, fell to $88.5 billion from $164.7 billion in the first quarter. Foreign acquisitions of U.S. assets increased by $83.0 billion after rising $69.7 billion in the first quarter. As a percentage of GDP, the current-account deficit dropped to 3.0% in the second quarter from 3.5% in the first quarter. The deficit is down sharply from the peak of 6.5% of GDP in the 2005 fourth quarter, but still up from a low of 2.4% in the second quarter of 2009.
