The current account deficit set a record.

In the second quarter, the deficit reached $34.73 billion, the Commerce Department reported. The current account measures not only trade between countries in merchandise but also services, primarily reflecting investment earnings and such transfer payments as foreign aid. The second-quarter imbalance was 2% higher than the previous record of $34.04 billion in the first quarter. While the balance of trade in merchandise improved, that was more than offset by other spending such as higher foreign aid.