By Greg Robb
WASHINGTON (MarketWatch) - The U.S. current account deficit widened to $108 billion in the third quarter, or 3.0% of gross domestic product, the Commerce Department reported Wednesday. The deficit remains down sharply from the peak of 6.5% of GDP in the fourth quarter of 2005. The increase in the deficit in the third quarter was more than accounted for by an increase in the deficit on goods. A small increase in net unilateral transfers to foreigners also contributed to the higher deficit. Net financial inflows dropped to $38.3 billion in the third quarter from $63.3 billion as there was an increase in U.S.-owned assets abroad. Foreign acquisitions of U.S. assets increased in the third quarter.
