WASHINGTON - Led largely by an increase in the deficit on goods, the imbalance in the U.S. current account rose in the first quarter to $109.0 billion from a revised $100.9 billion in the fourth quarter of last year, the Commerce Department reported this morning.
It was the third straight quarterly increase since the deficit of $84.4 billion in the second quarter of 2009, which was the smallest deficit since the third quarter of 1999.
Commerce said that the first quarter deficit represented 3.0% of GDP, up from 2.8% in the fourth quarter, Commerce said.
The fist quarter increase in the current account deficit was below economists’ expectations. Thomson Reuters’ median poll of economists predicted a $120.5 billion deficit for the first quarter.
The downwardly revised fourth quarter current account deficit of $100.9 billion was originally reported as a $115.6 billion deficit.
While goods exports increased 5.2% to $305.7 billion in the first quarter – as major end-use categories like industrial supplies and materials rose – an increase in goods imports was more pronounced, rising 6.1% to $456.9 billion.
As a result, the deficit on goods increased to $151.3 billion in the first quarter, up from $140.1 billion in the fourth.
The balance on services was a $36.0 billion surplus after a $35.4 billion surplus the previous quarter.
The deficit on goods and services rose to $115.3 billion in the first quarter from $104.7 billion in the fourth.
