US Current Account

The US Current Account measures the broad flow of transactions between US residents and the rest of the world. It combines trade in goods and services, primary income such as investment income, and secondary income such as transfers. A deficit means the United States paid more to the rest of the world than it received during the quarter; it does not by itself show whether the economy is strong or weak. The Bureau of Economic Analysis releases the data quarterly and may revise earlier figures. Markets compare the result with expectations and examine whether trade, income or transfers drove the change. Read it alongside the international investment position and trade reports, since one quarterly movement is not a direct forecast for the dollar.