Source: Bureau of Economic Analysis
The current account deficit gauging the trade balances on goods and services and income flows in the US closed the fourth quarter of 2021 at $217.9 billion, down 0.9% or $2.0 billion. SPY is up +0.53%, DXY is up +0.28%.
- Following the decline in trade deficit, the balances are now 3.6% of the gross domestic product in current-dollar terms, compared to 3.8% in the third quarter.
- The improvement in the trade balances reflected a fall in deficit on secondary income and expanded services surplus and primary income. Overall exports of services rose by $10.7 billion, against a rise in imports of $6.0 billion.
- The trade in goods posted a deficit, with the exports rising by $31.6 billion in the fourth quarter, less than a jump of $41.8 billion in imports.
- In the financial account, the deficit was recorded at $133.6 billion, reflecting more net borrowings by the US from foreign residents.