Q1 current account deficit $119 bln, 3.2% of GDP (by Greg Robb)

WASHINGTON (MarketWatch) - The U.S. current account deficit widened to $119.3 billion in the first quarter, or 3.2% of gross domestic product, from $112.2 billion in the fourth quarter, the Commerce Department reported Thursday. The deficit is down sharply from the peak of 6.5% of GDP in the fourth quarter of 2005. But the deficit has been widening steadily after hitting a low of 2.4% of GDP in the second quarter of 2009. In the first quarter, the wider deficit was accounted for by a increase in the deficit on goods and services. The surplus on income increased in the first quarter while net unilateral current transfers were lower than in the fourth quarter. Net financial inflows increased to $181.9 billion in the first quarter from $29.3 billion in the fourth quarter on a strong increase in U.S.-owned assets abroad.