The US current account gap widened again in the second quarter by growing to a record $166.18 billion, the US Commerce Department said today.
The gap - the broadest measure of trade and investment flows between the United States and the rest of the world - came in well above analysts' expectations for a $159.35 billion shortfall and could fan concerns about the US dollar and the nation's ability to continue to fund the deficit.
The gap in the first three months of the year was also revised upward, to $147.16 billion from the previously reported $144.88 billion.
The largest portion of the deficit continued to come from trade in goods and services, where a $163.58 billion shortfall in trade in goods was only slightly offset by a $13.29 billion surplus in services trade.
The surplus in investment income slid, further widening the gap. The surplus on international investment income fell to only $2.64 billion in the second quarter from $12.16 billion in the first three months of the year.
Unilateral transfers, which largely track US foreign aid payments and add to the current account shortfall, dipped slightly, to $18.53 billion from $20.73 billion in the previous quarter.
Although economists have long worried about the size of the current account imbalance, and have often said it will lead to a drop in the dollar's value in foreign exchange markets, the United States has continued to attract international investment.
Net inflows of capital totalled $71.8 billion in June, according to Treasury Department data. Capital flow figures for July are expected Thursday.