The U.S. current account deficit rose to $128.2 billion during Q4 2017 from $101.5 billion in Q3. It was the largest deficit since Q4 2008. The Q4 deficit figure compared to $124.7 billion expected in the Action Economics Forecast Survey. As a percent of GDP, the deficit grew to 2.6%. During all of last year, the current account deficit deepened to $466.2 billion, the largest since 2008.

The larger deficit last quarter was due to a deeper $214.3 billion shortfall on goods trade. A 3.7% increase (8.1% y/y) in goods exports was exceeded by a 5.7% rise (8.7% y/y) in imports. During all of last year, goods exports rose 6.5%, the largest rise since 2011. Imports rose 7.0% last year, also the largest increase since 2011.

The surplus on services trade increased slightly to $60.4 billion, but that remained smaller than the Q1'15 peak of $67.1 billion. Services exports rose 1.2% (5.0% y/y) while services imports gained 1.5% (7.8% y/y). For all of 2017, services exports increased 3.8%, the most since 2014. Exports of intellectual property rights rose 2.8% but travel exports declined 1.1%, the first annual decline since 2009. Services imports gained 6.6% for all of 2017. Charges for intellectual property increased 8.9% after an 11.4% rise and travel imports rose 9.4%, the largest increase since 2012.

The surplus on primary income eased to $57.2 billion, but remained near its six-year high. During all of  last year, the surplus rose to a record $217.0 billion. The deficit on secondary income increased to $31.5. During all of last year, the deficit eased to 114.8 billion.

From the capital account, the surplus on foreign direct investment shrank to $76.7 billion.

Balance of Payments data are in Haver's USINT database, with summaries available in USECON. The expectations figure is in the AS1REPNA database.