US Q1 current account deficit narrows by less than expected

America's shortfall on trade and other current transactions with the rest of the world was bigger than expected at the start of 2019.

According to the Department of Commerce, the US current account deficit narrowed by 9.3% over the first three months of the year when compared with the last quarter of 2018 to reach $130.4bn.

As a proportion of the country's gross domestic product, the deficit shrank from 2.8% to 2.5%.

The fourth quarter 2018 was revised higher, from -$134.4bn to -$143.9bn, on the back of downwards revisions to estimates for services imports and a wider deficit on the seconday income balance.

Receipts from exports of goods and services plus so-called primary and secondary income increased by $7.2bn to $945.9bn, while those from imports of goods and services plus so-called primary and secondary income shrank by $6.3bn to $1.08trn.

On the other side of the US balance of payments, no capital account transactions were recorded during the first quarter, while the financial account recorded net borrowing of $37.8bn, which was down from $161.6bn in the fourth quarter.