U.S. Current-Account Deficit Decreases in Third Quarter 2017

The U.S. current-account deficit decreased to $100.6 billion (preliminary) in the third quarter of 2017 from $124.4 billion (revised) in the second quarter of 2017. As a percentage of U.S. GDP, the deficit decreased to 2.1 percent from 2.6 percent. The previously published current-account deficit for the second quarter was $123.1 billion.

• The deficit on international trade in goods decreased to $195.3 billion from $201.4 billion as goods exports increased and goods imports decreased.
• The surplus on international trade in services increased to $60.9 billion from $59.7 billion as services exports increased more than services imports.
• The surplus on primary income increased to $57.0 billion from $50.5 billion as primary income receipts increased more than primary income payments.
• The deficit on secondary income (current transfers) decreased to $23.2 billion from $33.2 billion as secondary income receipts increased and secondary income payments decreased.

Net U.S. borrowing from financial-account transactions was $105.6 billion in the third quarter, down from $114.4 billion in the second.

• Net U.S. acquisition of financial assets excluding financial derivatives was $337.9 billion in the third quarter, down from $344.9 billion in the second.
• Net U.S. incurrence of liabilities excluding financial derivatives was $462.1 billion in the third quarter, down from $468.6 billion in the second.
• Net lending in financial derivatives other than reserves was $18.6 billion in the third quarter, up from $9.3 billion in the second.

For more information, read the full report.