Current Account Deficit Rises

The US current-account deficit grew by $3.1 billion, or 1.5 percent, to $219.3 billion in the first quarter of this year, the Commerce Department reported yesterday.

The first-quarter deficit was 3.3 percent of current-dollar gross domestic product, up less than 0.1 percent from the fourth quarter.

The $3.1 billion widening of the current-account deficit in the first quarter primarily reflected an expanded deficit on secondary income and a reduced surplus on primary income that were partly offset by a reduced deficit on goods.

Exports of goods and services to, and income received from, foreign residents increased $16 billion to $1.15 trillion in the first quarter, while imports rose $19.1 billion to $1.37 trillion.

Exports of goods increased $8.9 billion to $526.6 billion, reflecting increases in consumer goods, mostly medicinal, dental and pharmaceutical products, Commerce said. Imports of goods decreased $2.1 billion to $789.7 billion, reflecting a decrease in industrial supplies and materials, mainly petroleum and products and chemicals, that was partly offset by an increase in automotive vehicles, parts and engines, mainly passenger cars and trucks, buses and special purpose vehicles.

Exports of services increased $3.5 billion to $244.3 billion, while imports were up $2 billion to $182.2 billion. The increases in both exports and imports primarily reflected an increase in travel, mostly other personal travel.