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U.S. current account gap narrows in 3rd-qtr

Published 12/17/2008, 08:31 AM
Updated 12/17/2008, 08:35 AM
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WASHINGTON, Dec 17 (Reuters) - The U.S. current account deficit narrowed more than expected in the third quarter to $174.1 billion as exports of goods and services rose, a U.S. Commerce Department report showed on Wednesday.

The third-quarter shortfall was down from a revised $180.9 billion in the second quarter. Economists surveyed by Reuters had expected the third-quarter deficit would come in at $178.9 billion.

The current account is broadest measure of total U.S. trade with the rest of the world, covering goods, services and income transfers. The deficit in the third quarter was 4.8 percent of gross domestic product, down from 5.1 percent in the second.

Goods exports rose in the third quarter to $346.5 billion, helping to trim the goods deficit as imports increased by a lesser amount to $561.2 billion.

The services surplus increased to $38.2 billion in the third quarter and the surplus on investment income rose to $30.8 billion.

The U.S. dollar strengthened 4 percent on a trade-weighted quarterly average basis in the third quarter against a basket of seven major currencies. (Reporting by Doug Palmer, Editing by Neil Stempleman)

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