SMALLER GAP: The U.S. current account trade deficit narrowed to $98.9 billion in the April-June quarter, the lowest level in nearly three years. It was down 5.7 percent from the first quarter deficit and was the lowest since a $93.8 billion imbalance in the third quarter of 2009.
THE CAUSE: The improvement in the country's broadest measure of trade represented a drop in the deficit for goods and increases in the surpluses in services and investment income.
RIPPLE EFFECT: The lower current account deficit was a major factor boosting overall U.S. economic growth to an annual rate of 2.5 percent in the second quarter, up from a growth rate of 1.1 percent in the January-March period.
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