WASHINGTON — The deficit in the broadest measure of American trade fell more than expected in the third quarter, and the declines are likely to intensify as the U.S. recession and falling oil prices sharply narrow the trade gap.
U.S. exporters will face a tough time selling their products overseas as economic woes spread around the globe.
The current account trade deficit fell by 3.7 percent to $174.1 billion in the July-September quarter, the Commerce Department reported Wednesday. Economists had expected $178.8 billion.
The current account is the broadest measure of America’s dealings because it has not only trade in merchandise and services but also investment flows.
For all of last year, the current account deficit totaled $731.2 billion, meaning the country needed to borrow $2 billion a day from foreigners to finance activities.
