• Jump in imports substantially deepens the goods deficit.

• Services surplus declines to eight-year low.

The U.S. current account deficit grew to $178.5 billion during Q3'20 from $161.4 billion in Q2, revised from $170.5 billion. The Action Economics Forecast Survey anticipated a $188.0 billion deficit. As a percent of GDP, the deficit grew slightly to 3.4%, it's deepest since Q4'08.

The deficit in goods trade deteriorated to 245.6 billion as exports grew 23.7% (-13.1% y/y). All export categories posted significant increases including a 12.8% rise (-17.2% y/y) in capital goods exports and a 137.3% jump (-10.8% y/y) in auto exports. Exports of nonauto consumer goods increased 34.8% (-12.3% y/y) while foods, feeds & beverage exports grew 10.2% (3.5% y/y). Imports of goods rose 18.6% (-4.6% y/y). The gain reflected a 109.1% increase (-10.0% y/y) in auto imports and a 13.1% rise (-2.6% y/y) in capital goods imports. Nonauto consumer goods import improved 19.7% (0.5% y/y) and foods, feeds & beverage imports rose 8.8% (4.5% y/y).

The surplus on services trade narrowed to $57.2 billion. Services exports rose 1.8% (-24.8% y/y) as travel exports weakened by 14.0% (-76.7% y/y). Export charges for the use of intellectual property improved 11.5% (2.5% y/y). Imports of services strengthened 6.5% (-27.1% y/y), reflecting a 78.3% rise (-86.8% y/y) in travel imports. Imports of charges for the use of intellectual property increased 29.0% (9.7% y/y).

The surplus on primary income rose to $48.1 billion after falling sharply in Q2. Investment income receipts rose 12.7% (-16.8% y/y) while investment income payments increased 6.6% (-15.2% y/y). The deficit on secondary income deteriorated to a record $38.2 billion.

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