(BEA) The deficit on trade in goods and services and income flows between US residents versus the rest of the world was $190.3 billion in Q2, an increase of $0.9 billion or 0.5% from Q1.
Fig: US Current Account and Component Balances
The second quarter’s current account deficit was 3.3% of current-dollar GDP, below 3.4% recorded in the first quarter.
The increase in the current account deficit was fueled by reduced services surplus and primary income.
Capital transfer payments fell by $1.9 billion to $0.9 billion in the quarter on declining investment grants.
Net financial account transactions hit -$287.3 billion, reflecting an overall net borrowing on the US from foreign residents.SPY is up +0.17%, DXY is up +0.01%
