The US current account deficit bulged to a record $129.96 billion in the second quarter, according to figures released today.
The deficit in the current account - measuring trade in goods and services, investment income and monetary transfers - expanded from $112.5 billion in the first quarter.
The current account figure is key to the level of the US dollar, because it reflects the need for capital inflows to support US purchases and investments. Some analysts fear a dropoff in US investment could cause a precipitous fall in the dollar that could hurt the US economy.
The deficit has now hit a record for two straight quarters.
The deficit was bigger than expected. The consensus forecast of Wall Street economists had been for the current account deficit to widen to $125 billion. The current account deficit in the first quarter was unrevised from the initial estimate.
The widening of the deficit in the second quarter reflected a larger deficit for goods, and an increase in the deficit on income flows, the department said.
The deficit on goods widened to a record $122.64 billion in the second quarter, up from $106.42 billion in the previous quarter.
In the goods and services category, the deficit increased to a record $110.61 billion from $95.49 billion in the first quarter.