WASHINGTON, Sept 19 (Askume) – The U.S. current account deficit widened sharply in the second quarter to the highest in more than two years, driven by a surge in goods imports.
The current account deficit, which measures the flow of goods, services and investment in and out of the United States, widened by $25.8 billion, or 10.7%, to $266.8 billion from the previous quarter, the U.S. Commerce Department’s Bureau of Economic Analysis said on Thursday.
This is the highest level since the first quarter of 2022. Economists polled by Askume had expected a current account deficit of $260 billion.
The current account deficit is 3.7% of GDP, the highest level since the second quarter of 2022, up from 3.4% in the first quarter. The deficit reached 6.3% of GDP in the fourth quarter of 2005.
As a reserve currency, large current account deficits have no impact on the dollar.
Merchandise imports rose $20.1 billion to $813.9 billion, the highest level since the second quarter of 2022, led by gains in capital goods (mainly computer accessories, peripherals and parts) and computers and semiconductors.
Imports of consumer goods, including pharmaceutical, dental and pharmaceutical products, also increased.
Merchandise exports fell by $100 million to $516.7 billion. Non-monetary gold exports fell sharply, but were offset by a rise in capital goods, primarily computers.
The goods trade deficit widened to US$297.1 billion from US$276.9 billion in the first quarter, the highest level since the second quarter of 2022.
