U.S. Current Account Gap Improves in Quarter

The U.S. current account gap narrowed in the third quarter to $195.8 billion, partly because of insurance claims and donations from abroad in the wake of Hurricane Katrina.

The shortfall was smaller than Wall Street forecasts for a deficit of $204.8 billion. However, the Commerce Department revised the second-quarter gap to $197.8 billion from the $195.7 billion originally reported, and economists said the positive trend might not prove lasting.