Washington, DC, June 17--The current account deficit continued its steady march upward in the first quarter, the Commerce Department reported Friday.
In the first quarter, the deficit rose 3.6% to record $195.1 billion from the fourth quarter's revised $188.4 billion.
The deficit amounted to a record 6.4% of gross domestic product.
The widening of the deficit was larger than forecast. Economists had been expecting the first quarter's deficit to widen to about $189.4 billion from the initial estimate of a deficit of $187.9 billion in the fourth quarter, according to a survey conducted by MarketWatch.
The increase in the current account was largely due to a larger deficit in trade of goods, which rose to $186.3 billion. Foreign-owned assets in the United States increased $226.1 billion in the first quarter.
The current account deficit is the broadest measure of the nation's economic balance sheet with the rest of the world. It encompasses both trade and capital flows.
The goods and services deficit rose to $171.8 billion in the first quarter from $169.2 billion in the prior three-month period. Unilateral current transfers were net outflows of $27.1 billion in the January to March period, up from $22.4 billion in the fourth quarter.
The services surplus increased to $14.6 billion from $13.0 billion.
Foreign official assets in the United States rose by $24.7 billion in the first quarter, following an increase of $94.5 in the fourth quarter.
Foreign direct investment moderated slightly to $28.8 billion in the first quarter, while U.S. direct investment abroad slipped to $32.2 billion from $100 billion.
U.S.-owned assets abroad rose $60.7 billion in the first quarter after increasing by $289 billion in the fourth quarter.
Net foreign purchases of U.S. Treasurys rose to $75.5 billion in the first quarter from $15.7 billion in the second quarter, according to the Commerce Department data.
Foreign purchases of U.S. equities fell to $28.9 billion from $45.7 billion, while purchases of corporate bonds fell to $58.6 billion from $69.3 billion. Purchases of agency bonds plunged to $800 million from $43.2 billion.
