Current Account Deficit Swells to Record $144.9 Billion in First Quarter

[papau]

http://ap.tbo.com/ap/breaking/MGBYTO9BMVD.html

Current Account Deficit Swells to Record $144.9 Billion in First Quarter
By Jeannine Aversa Associated Press Writer

WASHINGTON (AP) - The deficit in the broadest measure of trade swelled to an all-time high of $144.9 billion in the first quarter of this year, reflecting Americans' insatiable appetite for foreign-made goods.

The latest snapshot of trade activity, released by the Commerce Department on Friday, showed that the "current account" deficit was 14.1 percent larger than the $127 billion shortfall registered in the fourth quarter of 2003.

The first-quarter's deficit figure was bigger than the $139.6 billion trade gap that some economists were forecasting and exceeded the previous record high of $138.2 billion set in the first quarter of 2003.

The current account report is considered the best measure of a country's international economic standing because it tracks not just the goods and services reflected in the government's monthly trade reports but also investment flows between countries and unilateral transfers, including U.S. foreign aid payments. <snip>