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US DATA: Current Account Deficit Surprises Higher Again

US DATA
USGlobalEM BulletFixed Income BulletsData BulletBulletMarketsEmerging Market NewsForeign Exchange BulletsRegionNorth America
  • The current account deficit was again larger than expected, rising to $266.8bn (cons $260bn) in Q2 after an upward revised $241bn (initial $237.6bn) in Q1 further extended what had been a large upside surprise.
  • It sees another sizeable increase to 3.7% GDP from 3.4% in Q1 and the 3.3% averaged in 2023, for its largest deficit since mid-2022.
  • The latest widening was driven by the goods deficit (from 3.9% to 4.2% GDP) but investment income has also continued to dwindle with a surplus now worth just 0.1% GDP.
  • This investment income surplus has been trimmed from 0.3% GDP at end-2023 and was 1.1% GDP prior to the pandemic, at least in part due to US assets outperforming those overseas.
  • With the fiscal deficit tracking at 5.6% GDP on a four quarter rolling basis in Q2 (and 7.3% over the twelve months to August), the US continues to run historically large twin deficits compared to pre-pandemic levels. 
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  • The current account deficit was again larger than expected, rising to $266.8bn (cons $260bn) in Q2 after an upward revised $241bn (initial $237.6bn) in Q1 further extended what had been a large upside surprise.
  • It sees another sizeable increase to 3.7% GDP from 3.4% in Q1 and the 3.3% averaged in 2023, for its largest deficit since mid-2022.
  • The latest widening was driven by the goods deficit (from 3.9% to 4.2% GDP) but investment income has also continued to dwindle with a surplus now worth just 0.1% GDP.
  • This investment income surplus has been trimmed from 0.3% GDP at end-2023 and was 1.1% GDP prior to the pandemic, at least in part due to US assets outperforming those overseas.
  • With the fiscal deficit tracking at 5.6% GDP on a four quarter rolling basis in Q2 (and 7.3% over the twelve months to August), the US continues to run historically large twin deficits compared to pre-pandemic levels.