US current account deficit expands to $116.8 billion

WASHINGTON — The U.S. deficit in the broadest measure of trade rose to the highest level in a year during the first quarter.

The Commerce Department said Tuesday the deficit in the U.S. current account rose to $116.8 billion in the January-March period, up 2.4 per cent from $114 billion in the last three months of 2016. The deficit was the largest since a $119.2 billion gap a year earlier.

The deficit in goods rose to $200.3 billion from $195.1 billion in October-December 2016 as imports grew faster than exports in the first quarter. Leading the increase in imports were industrial supplies, mostly crude oil. The goods gap was partly offset by a slightly higher surplus in trade in services.

The current account is the most complete measure of trade because it includes investment flows in addition to trade in merchandise and service. A deficit means the U.S. is consuming more from overseas than it is selling abroad.