The deficit in the nation's broadest measure of trade fell in the second quarter to the smallest amount since the final three months of last year.

The Commerce Department says the current account trade deficit declined to $119.9 billion in the April-June quarter, down by 9.1 percent from a first quarter deficit of $131.8 billion. It was the smallest deficit since the fourth quarter of last year when the deficit totaled $113.4 billion.

The current account is the broadest measure of trade because it covers not only trade in goods but also services and investment flows. Economists closely watch the figure because it indicates how much the United States needs to borrow from foreigners.