The Department
of Commerce reported on Friday that the current account (C/A) gap in the U.S. widened
by 52.9 percent q-o-q to $170.5 billion in the second quarter of 2020 from a revised
$111.5 billion gap in the previous quarter (originally -$104.2 billion). That was the highest level since the third quarter of 2008.
The deficit was
3.5 percentage of current-dollar GDP in the second quarter, up from 2.1 percent
in the first quarter.
Economists had
forecast a deficit of $157.9 billion.
According to
the report, the $59.0 billion widening of the C/A deficit in the second quarter
mostly reflected an expanded deficit on goods and reduced surpluses on primary
income and on services.
Exports of
goods declined $114.6 billion, to $288.9 billion, mostly reflecting decreases
in industrial supplies and materials (mainly petroleum and products), in
capital goods (mainly civilian aircraft, engines, and parts) and in automotive
vehicles, parts, and engines (mainly parts and engines and passenger cars). At
the same time, imports of goods dropped $87.1 billion, to $508.2 billion,
mostly reflecting decreases in automotive vehicles, parts, and engines (mainly
parts and engines and passenger cars) and in industrial supplies and materials
(mostly petroleum and products).
Exports of
services went down $46.3 billion, to $155.8 billion, while imports of services declined
$35.4 billion, to $101.3 billion. The decreases in both exports and imports
mostly reflected declines in travel, primarily other personal travel, and in
transport, primarily air passenger transport.
Receipts of
primary income declined $47.1 billion, to $209.4 billion, mostly reflecting
decreases in portfolio investment income, primarily income on equity
securities, and in direct investment income, primarily earnings.
Elsewhere, receipts
of secondary income fell $1.2 billion, to $33.9 billion, mostly reflecting a
decrease in private transfers, primarily private sector fines and penalties.
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