First-quarter deficit rose 2.6% to $226.8 billion, exceeding economist forecasts of $215.0 billion.
The US current account deficit increased by $5.8 billion in the first quarter to $226.8 billion, driven by a shift in the primary income balance to a $13.3 billion shortfall. The gap widened 2.6% from the revised fourth-quarter deficit of $221.1 billion, surpassing the $215.0 billion forecast by economists.
The deficit now represents 2.9% of GDP, up from 2.8% in the prior quarter. The trade deficit narrowed to $165.8 billion, but primary income payments hit a record $409.1 billion, offsetting gains. Fourth-quarter data was revised upward from $190.7 billion.
The dollar remained unaffected due to its reserve currency status, while capital-transfer receipts rose to $3.4 billion.