The US current account deficit widened by $5.8 billion, or 2.6%, to $226.8 billion in the first quarter of 2026, surpassing analyst forecasts of $208.9 billion to $215 billion [1, 2, 3]. The deficit represented 2.9% of GDP, up from 2.8% in the final quarter of 2025 [1, 4, 2].
A sharp swing in the primary income balance was a major factor. It moved from a $3.431 billion surplus in Q4 2025 to a $13.3 billion deficit in Q1 2026, worsening the overall current account position [1, 2]. Meanwhile, the goods trade deficit narrowed from $177.3 billion to $165.8 billion over the same period [1].
At the end of Q1 2026, the US net international investment position improved slightly, recording a negative $21.27 trillion compared with a revised negative $21.87 trillion at the close of 2025 [2].
Despite the goods trade deficit narrowing in the quarter, it widened sharply in May 2026, jumping 27.4% to $105.8 billion amid rising imports and falling exports linked to Middle East conflict concerns [5]. US goods imports increased by $10.9 billion to $313.4 billion in May, while exports declined by $11.8 billion to $207.7 billion [5].
The divergent movements in the current account and the May trade figures highlight shifting international trade dynamics. The next official update on the US balance of payments is expected following June data releases, which will shed further light on trends including the effects of geopolitical tensions on trade flows.
