U.S. Current-Account Gap Narrows 9.2% in Q3, Second Straight Decline

A swing to a primary‑income surplus and a larger services surplus powered the improvement, trimming the shortfall to 2.9% of GDP.

Overview

The Commerce Department reported the July–September 2025 balance on January 14, confirming a $226.4 billion deficit on a seasonally adjusted basis.
Primary income, which includes dividends and interest, flipped from a $5.7 billion deficit in the prior quarter to a $5.2 billion surplus.
The merchandise gap narrowed modestly by 1.1% to $267.3 billion, reflecting only a slight improvement in goods trade.
The services surplus rose 10.7% to $89.1 billion, contributing significantly to the overall narrowing.
As a share of the economy, the shortfall eased to 2.9% of GDP from 3.3% in the previous quarter.