The Commerce Department yesterday said the second-quarter current account deficit was a $183.1 billion, wider than the $175.6 billion first-quarter shortfall.
The increased red ink reflected a decrease in the surplus on income and an increase in the goods deficit. Interest and dividends from U.S.-owned foreign private investments dropped, and direct investment payments increased on foreign-owned assets in the U.S.
The current account gap was funded by $136.7 billion in financial inflows, including purchases of $67 billion Treasuries and $50.5 billion corporate bonds, and $93.8 billion in direct investment. There were also sales of $1.1 billion of U.S. equities and $32.8 billion from agencies. Unilateral transfers were $29.9 billion, and there was a $47.1 billion statistical discrepancy.
The $183.1 billion current account gap represented 5.1% of gross domestic product.
— Market News International