WASHINGTON (Reuters) -The U.S. current account deficit contracted by the most on record in the second quarter as a flood of imports subsided. 

The Commerce Department's Bureau of Economic Analysis said on Tuesday the current account deficit, which measures the flow of goods, services and investments into and out of the country, decreased by a record $188.5 billion, or 42.9%, to $251.3 billion, reversing the prior month's jump.

Data for the first quarter was revised to show the gap at $439.8 billion, still an all-time high, instead of $450.2 billion as previously reported.

Economists polled by Reuters had forecast the current account deficit declining to $256.8 billion last quarter.

The deficit represented 3.3% of gross domestic product, the smallest share since the third quarter of 2023, down from 5.9% in the January-March quarter. It peaked at 6.3% in the third quarter of 2006. 

President Donald Trump's tariffs have caused wild swings in goods imports this year, undercutting gross domestic product in the first quarter before boosting growth in the April-June quarter. Trump's unpredictable economic, trade and security policies have also spurred questions over whether the dollar, which accounts for 58% of the world's reserves, can remain at the center of the global monetary system.

Imports of goods declined by a record $184.5 billion to $820.2 billion last quarter. There were decreases in imports of nonmonetary gold, consumer goods as well as industrial supplies and materials, which include crude oil. 

Imports of services rose $2.8 billion to $222.0 billion, lifted by increases in technical, trade-related and other business services. There were also increases in telecommunications, computer and information services, partially offset by a drop in transport services.

Goods exports jumped $11.3 billion to $550.2 billion, boosted by increases in nonmonetary gold shipments. Exports of industrial supplies and materials fell.

Exports of services advanced $2.1 billion to $301.6 billion, driven by increases in financial services and in charges for the use of intellectual property. But exports of government goods and services fell. The goods trade deficit narrowed to $270 billion, the smallest since the fourth quarter of 2023, from $465.8 billion in the first quarter. 

Receipts of primary income increased $17.8 billion to $376.1 billion last quarter. Payments of primary income rose $22.8 billion to $383.8 billion. 

Receipts of secondary income decreased $2.6 billion to $45.9 billion, amid a decline in private transfers. Payments of secondary income fell $1.0 billion to $99.2 billion as general government transfers decreased.