• Patrons dine at the Jack's Barbecue restaurant in downtown Nashville, Tennessee June 19, 2013.  REUTERS/Harrison McClary

    Patrons dine at the Jack's Barbecue restaurant in downtown Nashville, Tennessee June 19, 2013. REUTERS/Harrison McClary (Copyright Reuters 2016)

  • A department store advertises for workers in Encinitas, California, U.S., September 13, 2016. REUTERS/Mike Blake

    A department store advertises for workers in Encinitas, California, U.S., September 13, 2016. REUTERS/Mike Blake (Copyright Reuters 2016)

  • Patrons dine at the Jack's Barbecue restaurant in downtown Nashville, Tennessee June 19, 2013.  REUTERS/Harrison McClary

    Patrons dine at the Jack's Barbecue restaurant in downtown Nashville, Tennessee June 19, 2013. REUTERS/Harrison McClary (Copyright Reuters 2016)

U.S. current account deficit narrows in the second quarter

Features Reuters

The U.S. current account deficit narrowed in the second quarter as exports and income from abroad rose, government data showed on Thursday.

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The Commerce Department said the current account deficit, which measures the flow of goods, services and investments into and out of the country, fell to $119.9 billion from an upwardly revised $131.8 billion the first quarter.

Economists polled by Reuters had forecast the current account deficit declining to $120.5 billion from a previously reported $124.67 billion shortfall.

The second-quarter current account deficit represented 2.6 percent of gross domestic product, down from 2.9 percent in the first three months of 2016. The current account deficit has declined from a record high of 6.3 percent of GDP in the fourth quarter of 2005, as rising domestic oil production and lower international oil prices keep the import bill in check.

In the second quarter, the surplus on primary income - which includes dividends - increased to $42.9 billion from $34.0 billion in the second quarter. The deficit on secondary income, worker remittances and grants, fell $3.1 billion to $37.6 billion.

Goods exports rose $6.1 billion to $360.2 billion.

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(Reporting by Lucia Mutikani; Editing by Andrea Ricci)