US Q3 current account -$310.8 billion versus -$284.0B estimate

• Prior quarter $-266.8 billion revised to $-275.0B
• Current Account -$310.8B vs -$284.0B estimate

• Exports of goods and services to, and income received from, foreign residents increased $6.0 billion to $1.21 trillion in the third quarter. Imports of goods and services from, and income paid to, foreign residents increased $42.0 billion to $1.52 trillion.1

• Exports of goods increased $13.6 billion to $530.0 billion, reflecting an increase in capital goods, mostly semiconductors; computer accessories, peripherals, and parts; and civilian aircraft. Imports of goods increased $23.7 billion to $837.2 billion, reflecting increases in capital goods, mostly computer accessories, peripherals, and parts; electric-generating machinery, electric apparatus, and parts; and computers, and in consumer goods, mainly medicinal, dental, and pharmaceutical products.
• Exports of services increased $7.7 billion to $279.9 billion, reflecting increases in government goods and services, mostly military units and agencies, and in telecommunications, computer, and information services, mostly computer services. Imports of services increased $6.0 billion to $206.2 billion, reflecting increases in charges for the use of intellectual property, mostly licenses to reproduce and/or distribute audiovisual products, and in insurance services, mostly reinsurance.

This is the largest deficit.

This is a drag on growth but it’s inevitable in an outperforming economy. Is it influenced by a Trump presidency and expected tariffs? It may also be a reflection of other economies vs the US. The US is doing better. Foreign countries are not.

The US shows a net positive flow into services, but outflows in all the other major categories with Goods being the largest deficit as we import way more than we export.

This article was written by Greg Michalowski at www.forexlive.com.