WASHINGTON – The U.S. current account deficit widened to $124.1 billion in the first quarter from a revised $116.1 billion gap in the previous quarter, data released Wednesday by the Commerce Department showed.
Annual revisions were included in the data.
The goods and services gap was the primary driver of the larger current account gap, widening to $155.6 billion in the first quarter from $147.8 billion in the fourth quarter.
The primary income surplus narrowed to $62.0 billion in the first quarter from $62.4 billion in the previous quarter, while the secondary income deficit narrowed to $30.5 billion from $30.7 billion in the fourth quarter.
The current account rose to 2.5% of GDP in the first quarter from 2.4% in the previous quarter.
In the first quarter, direct investment earnings were $130.6 billion, as US firms shifted their holdings in response to the Tax Cut and Jobs Act. There were dividends and withdrawals of $305.6 billion and reinvested earnings of -$175.0 billion.
After annual revisions, the 2017 current account gap stands at $449.1 billion, wider than the $432.9 billion gap in 2016.
