US government figures show that the country's balance of payments deficit narrowed in the third quarter to $178.5 billion from $188.9 billion in the second quarter.
The US current account balance - which is viewed as the broadest measure of trade and other income flows - narrowed by more than most economists had anticipated.
The third quarter reading represented around 5.1% of US economic output or gross domestic product, compared with 5.5% in the previous three-month period, marking its lowest level since the first quarter of 2004.
The narrowing of the balance of payments deficit suggests an easing of payments of the vast debt the US owes the rest of the world.
The improvement in the balance of payments gauge was largely explained by the services sector which posted a surplus of $26.5 billion. An improvement in tourism also helped narrow the deficit, the survey showed, reflecting in part the weak dollar which has also helped boost exports this year.
