U.S. Current-Account Deficit Decreases in Second Quarter 2016

The U.S. current-account deficit decreased to $119.9 billion (preliminary) in the second quarter of 2016 from $131.8 billion (revised) in the first quarter of 2016. As a percentage of current-dollar U.S. GDP, the deficit decreased to 2.6 percent from 2.9 percent. The previously published current-account deficit for the first quarter was $124.7 billion.

• The deficit on international trade in goods increased to $186.7 billion from $186.3 billion as goods imports increased more than goods exports.
• The surplus on international trade in services increased to $61.5 billion from $61.1 billion as services exports increased more than services imports.
• The surplus on primary income increased to $42.9 billion from $34.0 billion as primary income receipts increased more than primary income payments.
• The deficit on secondary income (current transfers) decreased to $37.6 billion from $40.6 billion as secondary income payments decreased and secondary income receipts increased.

Net U.S. borrowing from financial-account transactions was $31.1 billion in the second quarter, down from $45.4 billion in the first.

• Net U.S. acquisition of financial assets excluding financial derivatives was $293.7 billion in the second quarter, up from $59.9 billion in the first.
• Net U.S. incurrence of liabilities excluding financial derivatives was $350.4 billion in the second quarter, up from $118.2 billion in the first.
• Net lending in financial derivatives other than reserves was $25.6 billion in the second quarter, up from $13.0 billion in the first.

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