US deficit expands to $A153.3b in Q1

US current account deficit grew to $A153.3 billion in first quarter, highest level in a year.

The US deficit in the broadest measure of trade rose to the highest level in a year during the first quarter.

The Commerce Department says the deficit in the US current account rose to $US116.8 billion ($A153.3 billion) in the January-March period, up 2.4 per cent from $US114 billion in the last three months of 2016. The deficit was the largest since a $US119.2 billion gap a year earlier.

The deficit in goods rose to $US200.3 billion from $US195.1 billion in October-December 2016.

The current account is the most complete measure of trade because it includes investment flows in addition to trade in merchandise and service.

US President Donald Trump has pledged to reduce the US trade deficit, contending that it costs US factory jobs and reflects unfair practices by America's trading partners.


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Source: AAP



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