News Release
U.S. International Transactions Second Quarter 2000
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Harlan W. King: (202) 606-9571 BEA 00-28 Recorded Message: 606-5362 U.S. International Transactions: Second Quarter 2000 Current Account The U.S. current-account deficit--the combined balances on trade in goods and services, income, and net unilateral current transfers--increased to $106.1 billion in the second quarter from $101.5 billion (revised) in the first, according to preliminary estimates of the Bureau of Economic Analysis. The increase was nearly all accounted for by an increase in the deficit on goods. Goods and services The deficit on goods and services increased to $89.3 billion in the second quarter from $85.1 billion in the first. Goods The deficit on goods increased to $110.2 billion in the second quarter from $105.8 billion in the first. Goods exports increased to $191.8 billion from $183.7 billion. The increase was mostly accounted for by an increase in capital goods, especially computers, semiconductors, telecommunications equipment, and civilian aircraft. Goods imports increased to $302.0 billion from $289.6 billion. The increase was largely accounted for by increases in capital goods, especially computers and telecommunications equipment, and in consumer goods. The increase in petroleum products slowed, as petroleum prices rose considerably less than in recent quarters. Services The surplus on services increased to $21.0 billion in the second quarter from $20.7 billion in the first. Service receipts increased to $73.3 billion from $72.2 billion. The increase was accounted for by increases in royalties and license fees and in travel. Service payments increased to $52.4 billion from $51.5 billion. The increase was mostly accounted for by increases in travel, in "other" transportation, and in passenger fares. Income The deficit on income increased to $4.5 billion in the second quarter from $4.4 billion in the first. Investment income Income receipts on U.S.-owned assets abroad increased to $86.4 billion from $80.3 billion. The increase was mainly accounted for by increases in direct investment receipts and in "other" private receipts. Income payments on foreign-owned assets in the United States increased to $89.5 billion from $83.3 billion. The increase was mainly accounted for by increases in "other" private payments and in direct investment payments. Compensation of employees Receipts for compensation of U.S. workers abroad were unchanged at $0.6 billion. Payments for compensation of foreign workers in the United States were unchanged at $2.0 billion. Unilateral current transfers Net unilateral current transfers increased slightly to $12.3 billion from $12.0 billion, mostly as a result of an increase in U.S. Government grants. Capital and Financial Account Capital Account Net capital account transactions were unchanged at $0.2 billion. Financial Account Net recorded financial inflows--the difference between changes in U.S.-owned assets abroad and changes in foreign-owned assets in the United States--were $149.1 billion in the second quarter, up from $57.6 billion (revised) in the first. U.S.-owned assets abroad U.S.-owned assets abroad increased $73.6 billion in the second quarter, following an increase of $179.0 billion in the first. U.S. claims on foreigners reported by U.S. banks decreased $14.9 billion in the second quarter, in contrast to an increase of $55.5 billion in the first. The decrease in second-quarter lending reflected little lending to banks abroad and a large decrease in banks' domestic customers' claims, both of which were in response to unsettled conditions in world financial markets. Net U.S. purchases of foreign securities were $26.4 billion in second quarter, down from $27.2 billion in the first. Net U.S. purchases of foreign stocks doubled to $33.7 billion, primarily as a result of exchanges of stock related to acquisitions of U.S. companies by foreign companies; non-merger related transactions resulted in net sales of other stocks, reflecting a sharp decline in equity prices abroad. Transactions in foreign bonds shifted to net U.S. sales of $7.4 billion from net U.S. purchases of $11.4 billion, partly in response to the sharp increase in U.S. bond yields in May. Net financial outflows for U.S. direct investment abroad were $37.5 billion in the second quarter, down from $43.0 billion in the first. Net intercompany debt shifted to inflows, while net equity capital outflows nearly doubled, and reinvested earnings edged up. U.S. official reserve assets decreased $2.0 billion in the second quarter, following an increase of $0.6 billion in the first. Foreign-owned assets in the United States Foreign-owned assets in the United States increased $222.7 billion in the second quarter, following an increase of $236.5 billion in the first. Net foreign purchases of U.S. securities other than U.S. Treasury securities were $86.5 billion in the second quarter, down from record net purchases of $132.4 billion in the first. In the second quarter, net foreign purchases of U.S. stocks were $26.1 billion, down from $61.2 billion, partly in response to the sharp decline in U.S. equity prices early in the quarter, and net foreign purchases of U.S. corporate and other bonds were $60.5 billion, down from $71.2 billion. U.S. liabilities to foreigners reported by U.S. banks, excluding U.S. Treasury securities, increased $48.7 billion in the second quarter, following a decrease of $8.8 billion in the first. Most of the second-quarter increase was attributable to a sharp rise in banks' own liabilities, mostly to own foreign offices, as U.S. banks borrowed heavily from abroad to meet the higher demand for short-term funds in U.S. banking and securities markets. Net financial inflows for foreign direct investment in the United States were $79.7 billion in the second quarter, up sharply from $49.0 billion in the first. Net equity capital inflows rose sharply as a result of increased acquisitions of U.S. companies by foreign companies. Reinvested earnings increased slightly, and net intercompany debt inflows decreased. Net foreign sales of U.S. Treasury securities were $20.7 billion in the second quarter, up from net sales of $9.2 billion in the first. The step-up in net sales was partly attributable to lower yields on longer-term Treasury bonds. Net U.S. currency shipments to foreign countries were $1.0 billion in the second quarter, in contrast to net shipments from foreign countries to the United States of $6.8 billion in the first. Foreign official assets in the United States increased $5.9 billion in the second quarter, following an increase of $22.0 billion in the first. There were net sales of U.S. Treasury securities in the second quarter. The statistical discrepancy--errors and omissions in recorded transactions--was a negative $43.1 billion in the second quarter, compared with a positive $43.8 billion in the first. In the second quarter, the U.S. dollar appreciated 3 percent on a trade-weighted quarterly average basis against a group of 7 major currencies. Revisions The first-quarter international transactions are revised from previously published estimates. The current-account deficit for the first quarter was revised to $101.5 billion from $102.3 billion. The goods deficit was unchanged at $105.8 billion; the services surplus was revised to $20.7 billion from $19.7 billion; the deficit on income was revised to $4.4 billion from $4.2 billion; and net unilateral current transfers was revised to $12.0 billion from $11.9 billion. Net recorded financial inflows were revised to $57.6 billion from $71.7 billion. * * * Next release: Third quarter 2000............................................December 14, 2000 (Thursday) * * * BEA's major national, regional, international, and industry estimates, the Survey of Current Business, and BEA news releases are available on BEA's web site: <www.bea.doc.gov> STAT-USA maintains an Internet site that contains BEA estimates, the Survey of Current Business, and BEA news releases. The information available through STAT-USA is often more detailed and more timely than that available from other sources. To subscribe to STAT-USA's World Wide Web system, go to <www.stat-usa.gov>, or call (202) 482-1986. Subscriptions for single-user unlimited access to STAT-USA's Internet information are $75.00 for 3 months or $175.00 for 1 year. Summary BEA estimates are available on recorded messages at the time of public release at the following telephone numbers: (202) 606-5362 U.S. international transactions -5306 Gross domestic product -5303 Personal income and outlays Most of BEA's estimates and analyses appear in the Survey of Current Business, BEA's monthly journal. The printed Survey of Current Business is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. First class mail: Annual subscription $120.00 domestic. Second class mail: Annual subscription $48.00 domestic, $60.00 foreign; single issue $17.25 domestic, $21.56 foreign. September 13, 2000 Table 1.--U.S. International Transactions [Millions of dollars, quarters seasonally adjusted] 1999 2000 Change: (Credits +, debits -) 1999 2000 I II III IV Ir IIp I-II Current account 1 Exports of goods and services and income receipts.................................. 1,232,407 293,717 300,994 313,084 324,612 336,854 352,085 15,231 2 Exports of goods and services................................................. 956,242 230,321 234,297 241,969 249,653 255,977 265,133 9,156 3 Goods, balance of payments basis1......................................... 684,358 163,949 166,443 173,881 180,085 183,728 191,810 8,082 4 Services2................................................................. 271,884 66,372 67,854 68,088 69,568 72,249 73,323 1,074 5 Transfers under U.S. military agency sales contracts.................. 16,334 4,240 4,561 3,944 3,589 3,574 3,722 148 6 Travel................................................................ 74,881 18,140 18,564 18,695 19,482 20,431 20,749 318 7 Passenger fares....................................................... 19,776 4,814 4,902 5,105 4,955 5,062 5,088 26 8 Other transportation.................................................. 27,033 6,515 6,692 6,728 7,097 7,252 7,397 145 9 Royalties and license fees........................................... 36,467 9,114 9,140 9,106 9,107 9,353 9,685 332 10 Other private services............................................... 96,508 23,346 23,772 24,271 25,118 26,373 26,469 96 11 U.S. Government miscellaneous services............................... 885 203 223 239 220 204 213 9 12 Income receipts............................................................... 276,165 63,396 66,697 71,115 74,959 80,877 86,952 6,075 13 Income receipts on U.S.-owned assets abroad.............................. 273,957 62,861 66,149 70,556 74,393 80,302 86,370 6,068 14 Direct investment receipts........................................... 118,802 26,946 28,804 31,361 31,691 34,116 37,192 3,076 15 Other private receipts............................................... 151,958 35,004 36,535 38,449 41,970 45,091 47,932 2,841 16 U.S. Government receipts............................................. 3,197 911 810 746 732 1,095 1,246 151 17 Compensation of employees................................................ 2,208 535 548 559 566 575 582 7 18 Imports of goods and services and income payments.................................. -1,515,861 -349,513 -368,439 -391,337 -406,575 -426,335 -445,887 -19,552 19 Imports of goods and services................................................. -1,221,213 -282,997 -297,597 -314,687 -325,933 -341,094 -354,392 -13,298 20 Goods, balance of payments basis1......................................... -1,029,917 -236,973 -250,427 -266,199 -276,318 -289,566 -302,026 -12,460 21 Services2................................................................. -191,296 -46,024 -47,170 -48,488 -49,615 -51,528 -52,366 -838 22 Direct defense expenditures........................................... -13,650 -3,293 -3,373 -3,626 -3,358 -3,322 -3,350 -28 23 Travel................................................................ -59,351 -14,560 -14,718 -14,799 -15,274 -15,837 -16,107 -270 24 Passenger fares....................................................... -21,405 -5,215 -5,274 -5,348 -5,568 -5,777 -5,964 -187 25 Other transportation.................................................. -34,137 -7,784 -8,187 -8,953 -9,214 -9,582 -9,791 -209 26 Royalties and license fees........................................... -13,275 -3,081 -3,224 -3,314 -3,656 -3,590 -3,702 -112 27 Other private services............................................... -46,657 -11,401 -11,719 -11,682 -11,855 -12,706 -12,738 -32 28 U.S. Government miscellaneous services............................... -2,821 -690 -675 -766 -690 -714 -714 .... 29 Income payments............................................................... -294,648 -66,516 -70,842 -76,650 -80,642 -85,241 -91,495 -6,254 30 Income payments on foreign-owned assets in the United States............. -287,059 -64,636 -68,962 -74,749 -78,712 -83,289 -89,515 -6,226 31 Direct investment payments........................................... -56,098 -10,916 -14,106 -15,660 -15,416 -17,048 -18,771 -1,723 32 Other private payments............................................... -135,830 -31,051 -31,701 -34,942 -38,136 -40,167 -43,843 -3,676 33 U.S. Government payments............................................. -95,131 -22,669 -23,155 -24,147 -25,160 -26,074 -26,901 -827 34 Compensation of employees................................................ -7,589 -1,880 -1,880 -1,901 -1,930 -1,952 -1,980 -28 35 Unilateral current transfers, net.................................................. -48,025 -10,831 -11,537 -11,396 -14,260 -12,024 -12,336 -312 36 U.S. Government grants........................................................ -13,774 -2,574 -3,097 -2,847 -5,256 -2,912 -3,180 -268 37 U.S. Government pensions and other transfers.................................. -4,401 -1,066 -1,074 -1,080 -1,181 -1,114 -1,113 1 38 Private remittances and other transfers....................................... -29,850 -7,191 -7,366 -7,469 -7,823 -7,998 -8,043 -45 Table 1.--U.S. International Transactions (Continued) September 13, 2000 [Millions of dollars, quarters seasonally adjusted] 1999 2000 Change: (Credits +, debits -) 1999 2000 I II III IV Ir IIp I-II Capital and financial account Capital account 39 Capital account transactions, net.................................................. -3,500 157 165 171 -3,993 166 163 -3 Financial account 40 U.S.-owned assets abroad, net (increase/financial outflow (-))..................... -430,187 -21,555 -170,842 -122,909 -114,882 -178,958 -73,648 105,310 41 U.S. official reserve assets, net.............................................. 8,747 4,068 1,159 1,951 1,569 -554 2,020 2,574 42 Gold...................................................................... .... .... .... .... .... .... .... .... 43 Special drawing rights.................................................... 10 562 -190 -184 -178 -180 -180 .... 44 Reserve position in the International Monetary Fund....................... 5,484 3 1,413 2,268 1,800 -237 2,328 2,565 45 Foreign currencies........................................................ 3,253 3,503 -64 -133 -53 -137 -128 9 46 U.S. Government assets, other than official reserve assets, net................ 2,751 118 -392 -686 3,711 -131 -572 -441 47 U.S. credits and other long-term assets................................... -6,175 -1,314 -2,167 -1,595 -1,099 -1,750 -1,229 521 48 Repayments on U.S. credits and other long-term assets..................... 9,560 1,554 1,887 1,026 5,093 1,328 715 -613 49 U.S. foreign currency holdings and U.S. short-term assets, net............ -634 -122 -112 -117 -283 291 -58 -349 50 U.S. private assets, net....................................................... -441,685 -25,741 -171,609 -124,174 -120,162 -178,273 -75,096 103,177 51 Direct investment......................................................... -150,901 -41,112 -32,958 -43,552 -33,280 -42,963 -37,495 5,468 52 Foreign securities........................................................ -128,594 1,107 -71,131 -41,420 -17,150 -27,236 -26,350 886 53 U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns............................................. -92,328 -14,223 -25,734 -27,943 -24,428 -52,563 -26,112 26,451 54 U.S. claims reported by U.S. banks, not included elsewhere................ -69,862 28,487 -41,786 -11,259 -45,304 -55,511 14,861 70,372 55 Foreign-owned assets in the United States, net (increase/financial inflow (+))..... 753,564 102,780 272,008 194,210 184,567 236,535 222,736 -13,799 56 Foreign official assets in the United States, net.............................. 42,864 4,274 -1,096 12,191 27,495 22,015 5,905 -16,110 57 U.S. Government securities................................................ 32,527 6,793 -916 14,798 11,852 24,305 6,334 -17,971 58 U.S. Treasury securities.............................................. 12,177 800 -6,708 12,963 5,122 16,198 -4,000 -20,198 59 Other................................................................. 20,350 5,993 5,792 1,835 6,730 8,107 10,334 2,227 60 Other U.S. Government liabilities......................................... -3,255 -1,485 -1,099 -760 89 -644 -772 -128 61 U.S. liabilities reported by U.S. banks, not included elsewhere........... 12,692 -1,139 1,436 -2,032 14,427 -2,577 -561 2,016 62 Other foreign official assets............................................. 900 105 -517 185 1,127 931 904 -27 63 Other foreign assets in the United States, net................................. 710,700 98,506 273,104 182,019 157,072 214,520 216,831 2,311 64 Direct investment......................................................... 275,533 26,779 143,802 55,563 49,390 48,962 79,699 30,737 65 U.S. Treasury securities.................................................. -20,464 -7,505 -5,407 9,639 -17,191 -9,248 -20,661 -11,413 66 U.S. securities other than U.S. Treasury securities....................... 331,523 62,815 80,838 95,620 92,250 132,416 86,547 -45,869 67 U.S. currency............................................................. 22,407 2,440 3,057 4,697 12,213 -6,847 989 7,836 68 U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns............................................ 34,298 27,928 13,663 -8,085 792 58,061 21,597 -36,464 69 U.S. liabilities reported by U.S. banks, not included elsewhere........... 67,403 -13,951 37,151 24,585 19,618 -8,824 48,660 57,484 70 Statistical discrepancy (sum of above items with sign reversed).................... 11,602 -14,755 -22,349 18,177 30,531 43,762 -43,113 -86,875 Memoranda: 71 Balance on goods (lines 3 and 20).................................................. -345,559 -73,024 -83,984 -92,318 -96,233 -105,838 -110,216 -4,378 72 Balance on services (lines 4 and 21)............................................... 80,588 20,348 20,684 19,600 19,953 20,721 20,957 236 73 Balance on goods and services (lines 2 and 19)..................................... -264,971 -52,676 -63,300 -72,718 -76,280 -85,117 -89,259 -4,142 74 Balance on income (lines 12 and 29)................................................ -18,483 -3,120 -4,145 -5,535 -5,683 -4,364 -4,543 -179 75 Unilateral current transfers, net (line 35)........................................ -48,025 -10,831 -11,537 -11,396 -14,260 -12,024 -12,336 -312 76 Balance on current account (lines 1, 18, and 35 or lines 73, 74, and 75)........... -331,479 -66,627 -78,982 -89,649 -96,223 -101,505 -106,138 -4,633 r Revised. p Preliminary. 1. Adjusted for timing, valuation, and coverage to balance of payments basis; excludes exports under U. S. military agency sales contracts and imports of U. S. military agencies. 2. Includes some goods that cannot be separately identified from services. NOTE:--Details may not add to totals because of rounding. Source: U. S. Department of Commerce, Bureau of Economic Analysis
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