The Department of Commerce reported on Friday that the current account (C/A) gap in the U.S. widened by 10.6 percent q-o-q to $178.5 billion in the third quarter of 2020 from a revised $161.4 billion gap in the previous quarter (originally -$170.5 billion). This was the highest C/A deficit since the second quarter of 2008.

The deficit was 3.4 percentage of current-dollar GDP in the third quarter, up from 3.3 percent in the second quarter.

Economists had forecast a deficit of $189.0 billion.

According to the report, the $17.2 billion widening of the current account deficit in the third quarter mostly reflected an increased deficit on goods that was partly offset by an expanded surplus on primary income.

Exports of goods rose $68.4 billion to $357.1 billion, while imports of goods increased $94.4 billion to $602.7 billion. The gains in both exports and imports reflected increases in all major categories, led by automotive vehicles, parts, and engines, mainly parts and engines and passenger cars.

Exports of services went up $2.8 billion to $164.8 billion, while imports of services rose $6.5 billion to $107.7 billion.

Receipts of primary income grew $26.8 billion to $238.7 billion, and payments of primary income increased $11.9 billion to $190.6 billion. The advances in both receipts and payments mainly reflected gains in direct investment income, primarily earnings.

Elsewhere, receipts of secondary income increased $1.4 billion to $35.3 billion, reflecting an increase in private transfers, that was partly offset by a fall in general government transfers. Meanwhile, payments of secondary income rose $3.7 billion to $73.5 billion, reflecting increases in private transfers and in general government transfers.