Current account deficit narrows in spring

By MARTIN CRUTSINGER | September 15, 2011 | 8:40 AM EDT

WASHINGTON (AP) — The deficit in the broadest measure of foreign trade narrowed in the spring. A higher foreign oil bill was offset by increases in payments made by foreign tourists traveling in the United States and on income U.S. citizens and companies made on their overseas investments.

The Commerce Department says that the deficit in the current account narrowed by 1.3 percent to $118 billion in the April-June quarter, the smallest imbalance since the final three months of 2010.

The current account is the broadest measure of America's financial dealings with the world because it covers not only trade in goods but also services such as air travel and investment flows between nations.