The U.S. current-account deficit narrowed -$22.8 billion QoQ (-9.2%) to -$226.4 billion in Q3 2025 (2.9% of GDP), reflecting improvement across primary income, services, and goods balances.

• The Q3 deficit equaled 2.9% of current-dollar GDP, down from 3.3% in Q2, indicating a smaller external imbalance relative to the size of the economy.
• The Q2 2025 current-account deficit was revised to -$249.2 billion (from a preliminary $251.3 billion), with the revision driven mainly by a slightly larger services surplus ($80.6 billion vs $79.6 billion prelim) and a smaller primary income deficit ($5.8 billion vs -$7.7 billion prelim).
• Total current-account receipts (exports of goods and services plus income received) rose +$24.1 billion QoQ to $1.30 trillion, while total payments (imports plus income paid) increased only +$1.3 billion to $1.53 trillion, supporting the QoQ narrowing in the deficit.
• Goods trade improved modestly as goods exports fell -$1.9 billion to $548.0 billion while goods imports fell -$5.0 billion to $815.4 billion, reflecting lower exports of nonmonetary gold and lower imports of consumer goods (partly offset by higher nonmonetary gold imports).
• Services trade strengthened as services exports rose +$11.7 billion to $314.2 billion and services imports rose +$3.1 billion to $225.0 billion, with “other business services” (professional and management consulting) leading both increases.
• Primary income shifted from deficit to surplus as receipts increased +$16.3 billion to $395.2 billion (led by direct investment income) while payments increased +$5.3 billion to $390.0 billion (driven by other investment income, mainly interest), producing a key improvement versus Q2.
• Secondary income deficits were little changed in direction but eased slightly as receipts fell -$2.0 billion to $44.4 billion and payments fell -$2.1 billion to $97.9 billion, reflecting lower private transfers and reduced general government transfers.
• In the financial account, net financial-account transactions were -$409.9 billion in Q3 (net U.S. borrowing), as U.S. residents’ foreign assets increased +$403.4 billion while U.S. liabilities to foreign residents increased +$797.2 billion;, financial derivatives net transactions were -$16.1 billion, also indicating net borrowing.

The U.S. current-account deficit narrowed by $188.5 billion (-42.9%) to $251.3 billion in Q2 2025 (3.3% of GDP), down from $439.8 billion (5.9% of GDP) in Q1, reflecting a sharp reduction in the goods deficit.

• Exports of goods and services plus income receipts rose $28.6 billion to $1.27 trillion, while imports and income payments fell $159.9 billion to $1.53 trillion.

• Goods exports increased $11.3 billion to $550.2 billion, led by nonmonetary gold, while imports dropped $184.5 billion to $820.2 billion on declines in gold, consumer goods, and industrial supplies.

• Services exports rose $2.1 billion to $301.6 billion on gains in financial services and intellectual property charges, while imports rose $2.8 billion to $222.0 billion, led by business and IT services.

• Primary income receipts rose $17.8 billion to $376.1 billion, but payments increased more (up $22.8 billion to $383.8 billion), widening the deficit in this category.

• Secondary income receipts declined $2.6 billion to $45.9 billion, while payments eased $1.0 billion to $99.2 billion, leaving the net deficit largely unchanged.

• The capital account showed minimal activity, with receipts falling $8.9 billion to $16 million and payments at $1.9 billion.

• In the financial account, net U.S. borrowing was $406.9 billion as liabilities to foreigners grew $653.4 billion (mainly portfolio $452.5 billion) and U.S. assets abroad increased $220.6 billion.

• Net financial derivatives transactions registered $25.8 billion, reflecting net U.S. lending.

The US current-account deficit widened by $138.2 billion to $450.2 billion in Q1 2025 (6.0% of GDP), up from 4.2% of GDP in Q4 2024, driven mainly by a surge in goods imports.

• Exports of goods rose $21.1 billion to $539.0 billion, while goods imports jumped $158.2 billion to $1.00 trillion.
• Services exports declined -$4.4 billion to $293.2 billion; services imports fell -$1.8 billion to $217.8 billion.
• Primary income receipts fell -$22.9 billion, while payments declined -$13.7 billion, resulting in a $7.6 billion net deficit.
• Net secondary income improved as receipts rose $2.3 billion and payments declined -$8.4 billion.
• The financial account showed net U.S. borrowing of $299.5 billion, with foreign liabilities increasing $843.7 billion and U.S. assets abroad up $524.9 billion.

The US current account deficit improved from $310.2 billion in Q3 2024 to $303.9 billion in Q4 2024, beating the consensus projection that the deficit would widen to $325.5 billion.

• The $6.3 billion narrowing of the current-account deficit in the fourth quarter reflected a shift in the balance on primary income from a deficit in Q3 2024 to a surplus in Q4 2024 and changes in the balances on secondary income and on services that, collectively, were largely offset by an expanded deficit on goods.
• Exports of goods and services to, and income received from, foreign residents increased $16.1 billion to $1.22 trillion. Imports of goods and services from, and income paid to, foreign residents increased $9.7 billion to $1.53 trillion.

The US current account deficit widened by -$35.9 bil, a decrease of -13.1% QoQ, to -$310.9 bil in Q3 2024. The deficit was 4.2% of GDP, up from 3.7% of GDP in Q2 2024. Exports of goods and services to, and income received from, foreign residents increased $6.0 bil to $1.21 tril in Q3. Imports of goods and services from, and income paid to, foreign residents increased $42.0 bil to $1.52 tril.