The U.S. current account deficit narrowed to $130.4 billion during Q1'19 from $143.9 billion during Q4'18, revised from $134.4 billion. It compared to a $125.0 billion deficit expected in the Action Economics Forecast Survey. As a percent of GDP, the deficit narrowed to 2.5% from 2.8% in Q4.

The smaller deficit last quarter was due to a lessened $216.5 billion shortfall on goods trade. Goods exports rose 0.6% (2.1 % y/y) and reversed the Q4 decline, while goods imports declined 2.1% (+0.7% y/y) following a 0.3% rise.

The surplus on services trade was little changed at $61.9 billion, but earlier surpluses were revised down. Services exports rose 1.1% (0.8% y/y) after holding steady in Q4. Telecommunications, computer & information services exports gained 0.6% (5.6% y/y) after two quarters of strong increase. Exports of intellectual property rights declined 0.7% (-6.4% y/y), the fourth straight quarter of decline. Travel exports improved 2.6% (0.5% y/y). Services imports gained 1.1% (5.3% y/y) after two quarters of stronger increase. Charges for intellectual property rose 0.3% (2.1% y/y) and travel imports strengthened 1.8% (7.0% y/y). Telecommunications, computer & information services imports rose 1.8% (7.4% y/y).

The surplus on primary income rose modestly to $61.1 billion, down versus the record high of $66.4 billion reached one year earlier. The deficit on secondary income widened to a record $36.9 billion.

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