US current account deficit narrows to 3.4% of GDP in Q3

The shortfall on America's current account narrowed by a bit more than expected over the three months to September.

According to the Department of Commerce, in seasonally adjusted terms, the US current account deficit shrank from -$239.3bn during the second quarter of 2022 to -$217.1bn in the third or by 9.1%.

Economists had forecast a deficit of -$222.0bn.

Commerce's preliminary estimate for the prior quarter was also revised lower from an initial estimate of -$251.1bn.

As a proportion of gross domestic product deficit therefore fell from 3.8% to 3.4%.

The main driver of the reduction was a decline in the deficit on trade in goods, which was partially compensated by a lower surplus on the sub-balance for primary income and a higher deficit on the secondary income balance.