The Department of Commerce reported on Wednesday that current account (C/A) gap in the U.S. widened to $134.4 billion in the fourth quarter of 2018 from an upwardly revised $126 billion gap in the previous quarter (originally -$124.8 billion). The deficit was 2.6 percent of current-dollar GDP in the fourth quarter, up from 2.5 percent in the third quarter. 

Economists had forecast a deficit of $132 billion. 

According to the report, the $7.8 billion increase in the C/A deficit mainly reflected a rise in the deficits on goods and on secondary income and a decrease in the surplus on services. 

Goods exports dropped by $3.7 billion to $416.1 billion, mainly reflecting a decrease in foods, feeds, and beverages, mostly soybeans. Secondary income payments increased $3.0 billion to $64.8 billion, mainly due to a rise in U.S. government grants. Meanwhile, services imports increased by $3.4 billion to $143.2 billion, mostly due to travel (for all purposes including education), primarily personal travel, and in transport, primarily sea freight transport and air passenger transport. 

In 2018, the U.S. C/A gap increased by 8.8 percent to $488.5 billion, the highest level since 2008. It is equivalent to 2.4 percent of current-dollar GDP, compared to 2.3 percent in 2017.