FX.co ★ US Current Account Deficit Narrows More than Expected

In the third quarter of 2025, the United States saw a notable improvement in its current account balance, with the deficit shrinking by $22.8 billion, or 9.2%, to reach $226.4 billion. This figure surpassed market predictions, which had anticipated a deficit of $238 billion. The primary driver of this improvement was a reduction in the goods deficit, which decreased to $267.4 billion from $270.4 billion. This reduction occurred as companies scaled back on imports, having previously made significant foreign purchases to avoid the impact of aggressive tariffs introduced by the U.S. Presidential Administration. Concurrently, the services surplus widened to $89.2 billion from $80.6 billion. Additionally, the primary account recorded a surplus of $5.2 billion, a turnaround from the previous deficit of $5.8 billion, while the secondary income deficit saw a slight reduction, moving to $53.5 billion from $53.6 billion.