Summary Box: Current account deficit narrows

AP News
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Posted: Sep 15, 2011 6:39 PM
Summary Box: Current account deficit narrows

DEFICIT DOWN: The deficit in the current account, the broadest measure of foreign trade narrowed by 1.3 percent to $118 billion in the April-June quarter, the smallest imbalance since the last three months of 2010.

INCOMES AND TRAVEL: The lower deficit reflected higher earnings by U.S. citizens and companies on their overseas investments and more spending by foreigners on services such as air travel.

OUTLOOK: The deficit in goods trade increased, reflecting a big jump in America's oil bill that overshadowed gains in U.S. exports. While economists hope exports will continue to show solid gains in coming quarters, that forecast has been thrown into doubt by a global economic slowdown.