[WASHINGTON] The US current account deficit surged to a 15-year high in the third quarter amid a record increase in imports as businesses rushed to replenish depleted inventories.

The Commerce Department said on Tuesday that the current account deficit, which measures the flow of goods, services and investments into and out of the country, accelerated 8.3 per cent to US$214.8 billion last quarter. That was the biggest shortfall since the third quarter of 2006.

Data for the second quarter was revised to show a US$198.3 billion deficit, instead of US$190.3 billion as previously reported. Economists polled by Reuters had forecast a US$205.0 billion deficit last quarter.

The current account gap represented 3.7 per cent of gross domestic product. That was the largest share since the fourth quarter of 2008 and was up from 3.5 per cent in the April-June quarter.

Still, the deficit remains below a peak of 6.3 per cent of GDP in the fourth quarter of 2005 as the United States is now a net exporter of crude oil and fuel.

REUTERS

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL