WASHINGTON (MarketWatch) - The U.S. current account deficit fell by 3.8% to $98.5 billion in the second quarter from a revised $102.2 billion in the first quarter, the Commerce Department said Wednesday. The decline largely stemmed from a smaller deficit in a category known as secondary income that measures certain transfers between the U.S. and other countries. As a percentage of gross domestic product, the current-account deficit edged down to 2.3% from 2.4%. The deficit is down sharply from the peak of 6.5% of GDP in 2005 and it's has been trending near the lowest level in five years. The current account is basically a measure of how much a country owes or is owed in its dealings with other nations. Countries with current-account deficits need to borrow more money from abroad to make up the difference. The U.S. deficit in goods - products such as autos, computers and consumer electronics - climbed 3.7% to $189.2 billion in the second quarter. The U.S. surplus in services such as financial advice and hospitality rose slightly to $58.9 billion. The U.S. typically runs a deficit in goods and a surplus in services.

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