The US current account deficit dropped slightly in the second quarter but it remained the second-highest on record, the Commerce Department reported Friday.

The deficit of the US current account, the broadest measure of trade and capital flow, totaled 195.7 billion US dollars in the second quarter, 1.5 percent down from the all-time high 198.7 billion-dollar deficit in the first quarter this year.

The trade deficit in goods and services increased to 186.9 billion dollars, mainly attributed to higher payments for foreign oil, up from 186.3 billion dollars in the first quarter.

The balance on investment earnings turned negative for the first time in three years. The deficit totaled 455 million dollars compared with a surplus of 643 million dollars in the first quarter.

Analysts say the United States is on track to surpass the record-high current account deficit of 668.1 billion dollars last year despite the slight improvement in the second quarter.

Economists warn such levels of deficit represent a serious imbalance in the US economy, reflecting high levels of US consumption but an extremely low savings rate, which is unsustainable in the long run.

Source: Xinhua