US current account deficit narrows to $94.8 billion in third quarter, smallest in 4 years

WASHINGTON – The U.S. current account deficit narrowed in the July-September quarter to the lowest level in four years as a rise in Americans’ foreign investment earnings helped offset a bigger deficit in goods.

The Commerce Department says the deficit in the current account declined to $94.8 billion in the third quarter, the smallest imbalance since the third quarter of 2009 when the country was climbing out of a deep recession. The deficit was 1.8 per cent lower than a revised $96.6 billion deficit in the April-June quarter.

The current account is the country’s broadest trade measure covering not only goods and services but also investment flows.

For the third quarter, the deficit in goods increased by 1.7 per cent but this was offset by a 7.1 per cent rise in investment earnings.