A money exchange vendor holds U.S. dollar banknotes at his shop in Beirut, Lebanon December 21, 2022. REUTERS/Mohamed Azakir Acquire Licensing Rights
WASHINGTON, Sept 21 (Reuters) – The U.S. current account deficit narrowed sharply in the second quarter as surpluses on services and primary income offset a shortfall on goods, data showed on Thursday.
The Commerce Department said the current account deficit, which measures the flow of goods, services and investments into and out of the country, contracted by $2.4 billion, or
1.1%, to $212.1 billion last quarter. That was the lowest level since the second quarter of 2021.
The current account gap represented 3.166% of gross domestic product compared to 3.234% in the first quarter. The deficit peaked at 6.3% of GDP in the fourth quarter of 2005.
The United States is now a net exporter of crude oil and fuel. Though the deficit remains large, it has no impact on the dollar given its status as the reserve currency.
Exports of goods dropped $29.0 billion to $497.6 billion, while goods imports fell $17.1 billion to $772.8 billion. The decline in both exports and imports mostly reflected a decrease in industrial supplies and materials, largely petroleum and products.
Exports of services increased $4.7 billion to $247.3 billion, lifted by personal travel as well as professional and management consulting services. Imports of services fell $5.5 billion to $175.7 billion, weighed down by sea freight transport and personal travel.
Primary income receipts increased $15.5 billion to $354.5 billion, while payments of primary income jumped $12.0 billion to $319.5 billion. Both were boosted by higher interest on loans and deposits amid tighter U.S. and foreign monetary policy.
Reporting by Lucia Mutikani; Editing by Paul Simao
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