[WASHINGTON] The US current account deficit narrowed in the second quarter as exports and income from abroad rose, government data showed on Thursday.
The Commerce Department said the current account deficit, which measures the flow of goods, services and investments into and out of the country, fell to US$119.9 billion from an upwardly revised US$131.8 billion the first quarter.
Economists polled by Reuters had forecast the current account deficit declining to US$120.5 billion from a previously reported US$124.67 billion shortfall.
The second-quarter current account deficit represented 2.6 per cent of gross domestic product, down from 2.9 per cent in the first three months of 2016. The current account deficit has declined from a record high of 6.3 per cent of GDP in the fourth quarter of 2005, as rising domestic oil production and lower international oil prices keep the import bill in check.
In the second quarter, the surplus on primary income - which includes dividends - increased to US$42.9 billion from US$34.0 billion in the second quarter. The deficit on secondary income, worker remittances and grants, fell US$3.1 billion to US$37.6 billion.
Goods exports rose US$6.1 billion to US$360.2 billion.