Source: Bureau of Economic Affairs
US trade in goods and services and income flows with the rest of the world hit a deficit of $214.8 billion in the third quarter, up 8.3% or $16.5 billion from the second quarter. SPY is up +0.95%, DXY is down -0.01%.
- An increase in secondary income and goods deficit played a greater role in the account’s negative balance, offsetting increased surplus on primary income. Services surplus also reduced.
- Capital-transfer receipts were recorded at $3.8 billion in the quarter, reflecting compensations from foreign insurance firms due to Hurricane Ida losses.
- Third quarter’s net financial account transactions were posted at minus $127.2 billion, underlining net US borrowings by foreign residents. Net transactions relating to financial derivatives were -$8.0 billion.
- The US current account deficit is now 3.7% of the country’s national output, an increase from 3.5% posted in the second quarter.