Current Account Gap Widens

The nation’s current account deficit, the broadest measure of the U.S. trade balance with the rest of the world, climbed to a record $164.7 billion in the third quarter as Americans’ demand for imported oil and foreign-made goods continued to swell, the Commerce Department reported Thursday.

In a separate report, new claims for unemployment insurance last week dropped by 43,000 to a five-month low of 317,000, the Labor Department said.

The current account deficit was up 0.2% from the second quarter, lower than the $171 billion forecast by economists.

The current account report is considered the best measure of a country’s international economic standing because it tracks not only goods and services but also investment flows between countries and unilateral transfer payments, such as foreign aid payments.

The deficit on goods widened to $166.7 billion, from $163.6 billion in the second quarter.

In services, the U.S. is running a surplus. However, it narrowed to $11.4 billion in the third quarter, from $12.5 billion in the second quarter. The U.S. also is running a surplus in investment earnings. The surplus increased to $5.3 billion in the third quarter, from $5 billion in the previous quarter.