US current account deficit declines to 2.4% of GDP in third quarter

The US current account deficit continued to decline during the third quarter of the year thanks mainly to a lower shortfall in the country's trade in goods.

America's current account deficit fell from $118.3bn over the three months to September, which was equivalent to 2.6% of gross domestic product, to $113.0bn or 2.4% of GDP, according to the Department of Commerce.

Economists had forecast a reading of $116.6bn.

A narrower deficit in the balance of trade in goods, which fell by $9.0bn to $177.7bn, was the main contributor to the improved reading.

The primary income balance slipped from $44.2bn to $43.4bn while that on the secondary income balance slipped from -$37.7bn to -$39.0bn.