WASHINGTON - Led largely by an increase in the deficit on goods, the imbalance in the U.S. current account rose in the fourth quarter to $115.6 billion from a revised $102.3 billion in the third quarter, the Commerce Department reported this morning.
While goods exports increased 8.8% to $285.9 billion in the fourth quarter – as major end-use categories like automotive vehicles, parts and engines increased strongly – an increase in goods imports was more pronounced, rising 9.3% to $432.4 billion.
The increase in the current account deficit was below economist expectations. Thomson Reuters’ median poll of economists predicted a $119.0 billion deficit for the fourth quarter.
Meanwhile, the third quarter $102.3 billion current account deficit was downwardly revised from an originally reported $108.0 billion deficit.
For the fourth quarter, the balance on goods clocked in at a $108.9 billion, following a $96.4 billion deficit in the third, while the balance on services was a $36.5 billion surplus after a $35.7 billion surplus the previous quarter.
The deficit on goods and services rose to $145.5 billion in the fourth quarter from $132.1 billion in the third.
The fourth quarter current account deficit represented 3.2% of GDP.
