US current account widens sharply in third quarter

The US current account deficit surged in the third quarter as a record rebound in consumer spending pulled in imports, outpacing a recovery in exports.

The Commerce Department said on Friday the current account deficit, which measures the flow of goods, services and investments into and out of the country, widened 10.6 per cent to $178.5 billion last quarter.

Data for the second quarter was revised to show a $161.4 billion shortfall, instead of $170.5 billion as previously reported. Economists polled by Reuters had forecast the current account gap increasing to $189.0 billion in the July-September quarter.