The Current Account Deficit shrank dramatically in the 3rd quarter. Hurricanes account for over 100% of the improvement.
The Current Account is defined as the sum of the balance of trade (goods and services exports less imports), net income from abroad and net current transfers. It is called the current account because goods and services are generally consumed in the current period.
Current Account Balance
The BEA's International Transaction Report shows the U.S. current-account deficit decreased to $100.6 billion (preliminary) in the third quarter of 2017 from $124.4 billion (revised) in the second quarter of 2017,
Current Account Transactions
Hurricane Impact
The deficit decreased by $23.8 billion in the third quarter. Thank the hurricanes.
“Capital transfer receipts were $24.9 billion in the third quarter. The transactions reflected receipts from foreign insurance companies for losses resulting from hurricanes Harvey, Irma, and Maria.”
Clearly, this is a one-time benefit.
