According to the Economics and Statistics Administration (ESA) the U.S. current-account deficit — the combined balances on trade in goods and services, income, and net unilateral current transfers — decreased to $117.4 billion (preliminary) or 3.0 percent of gross domestic product (GDP) in the second quarter of 2012. This is down from $133.6 billion (revised) or 3.58 percent of GDP in the first quarter of 2012. The ESA accounted for this decrease in the current-account deficit by a decrease in the deficit on goods and an increase in the surplus on income. The Current Account Balance report, also known as the "current account deficit,” is released quarterly by the Bureau of Economic Analysis. It is a measurement of net U.S. trade in merchandise, services, and certain financial transactions.
Chris Bryant is an American financial advisor.