The U.S. current account deficit fell to $101.5 billion during Q2 2018 from $121.7 billion in Q1. It was the smallest deficit since Q4 2015 and compared to $103.5 billion expected in the Action Economics Forecast Survey. As a percent of GDP, the deficit declined to 2.0% from 2.4%.

The smaller deficit last quarter was partly due to a shallower $203.2 billion shortfall on goods trade. Goods exports increased 4.3%, while goods imports held steady. 

Additionally, the surplus on services trade increased to a record $69.3 billion. Services exports rose 1.5%. Telecommunications, computer & information services exports gained 2.5% (8.2% y/y). Exports of intellectual property rights rose 1.8% (6.1% y/y) while travel exports rose 0.6% (2.7% y/y). Services imports gained 0.4%. Charges for intellectual property declined 1.5% (-11.5% y/y) and travel imports increased 0.1% (6.2% y/y). Telecommunications, computer & information services imports rose 1.7% (5.5% y/y).

The surplus on primary income eased to $60.8 billion, but remained near the record high. The deficit on secondary income also slipped to $28.5, and remained narrower y/y.

From the capital account, the deficit on foreign direct investment shrank to $29.1 billion. This year's deficits compare to surpluses through most of the post-war period.

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