WASHINGTON, June 24 (Reuters) - The U.S. current account deficit widened more than expected in the first quarter amid a shortfall on the primary income balance, government data showed on Wednesday.
The Commerce Department's Bureau of Economic ****** ysis said the current account deficit, which measures the flow of goods, services and investments into and out of the country, increased $5.8 billion, or 2.6%, to $226.8 billion last quarter.
Data for the fourth quarter was revised to show the deficit at $221.1 billion instead of the previously estimated $190.7 billion. Economists polled by Reuters had forecast the current account deficit widening to $215.0 billion.
The first-quarter current account deficit represented 2.9% of gross domestic product, up from 2.8% in the October-December quarter. It peaked at 6.3% in the third quarter of 2006. The current account deficit has no impact on the dollar given the greenback's status as a reserve currency.
The primary income balance slipped into a $13.3 billion shortfall last quarter from a $3.431 billion surplus. That partially offset a contraction in the trade deficit to $165.8 billion from $177.3 billion in the October-December quarter.
The Commerce Department's Bureau of Economic ****** ysis said the current account deficit, which measures the flow of goods, services and investments into and out of the country, increased $5.8 billion, or 2.6%, to $226.8 billion last quarter.
Data for the fourth quarter was revised to show the deficit at $221.1 billion instead of the previously estimated $190.7 billion. Economists polled by Reuters had forecast the current account deficit widening to $215.0 billion.
The first-quarter current account deficit represented 2.9% of gross domestic product, up from 2.8% in the October-December quarter. It peaked at 6.3% in the third quarter of 2006. The current account deficit has no impact on the dollar given the greenback's status as a reserve currency.
The primary income balance slipped into a $13.3 billion shortfall last quarter from a $3.431 billion surplus. That partially offset a contraction in the trade deficit to $165.8 billion from $177.3 billion in the October-December quarter.
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