News Release
U.S. International Transactions: Third Quarter 2007
U.S. International Transactions: Third Quarter 2007
Current Account
Current Account
U.S. International Transactions: Third Quarter 2007 Current Account The U.S. current-account deficit--the combined balances on trade in goods and services, income, and net unilateral current transfers--decreased to $178.5 billion (preliminary) in the third quarter of 2007 from $188.9 billion (revised) in the second quarter. Increases in the surpluses on income and on services and a decrease in the deficit on goods more than accounted for the decrease. An increase in net unilateral current transfers to foreigners was partly offsetting. Goods and services The deficit on goods and services decreased to $173.2 billion in the third quarter from $178.4 billion in the second. Goods The deficit on goods decreased to $199.7 billion in the third quarter from $204.2 billion in the second. Goods exports increased to $297.9 billion from $279.3 billion. The largest increases were in capital goods; in foods, feeds, and beverages; in nonagricultural industrial supplies and materials; and in automotive vehicles, parts, and engines. Goods imports increased to $497.6 billion from $483.6 billion. The largest increases were in automotive vehicles, parts, and engines; in petroleum and products; and in capital goods. Services The surplus on services increased to $26.5 billion in the third quarter from $25.8 billion in the second. Services receipts increased to $119.8 billion from $117.2 billion. The increase was largely accounted for by an increase in travel. Royalties and license fees, other transportation (such as freight and port services), and passenger fares also increased. Services payments increased to $93.2 billion from $91.4 billion. The largest increases were in travel, in other private services (such as business, professional, and technical services, insurance services, and financial services), in other transportation, and in passenger fares. Income The surplus on income increased to $20.5 billion in the third quarter from $12.7 billion in the second. Investment income Income receipts on U.S.-owned assets abroad increased to $204.9 billion from $194.7 billion. The increase was accounted for by increases in other private receipts (which consists of interest and dividends) and in direct investment receipts. Income payments on foreign-owned assets in the United States increased to $182.7 billion from $180.4 billion. Increases in other private payments (which consists of interest and dividends) and in U.S. Government payments (which consists of interest) were partly offset by a decrease in direct investment payments. Compensation of employees Receipts for compensation of U.S. workers abroad were virtually unchanged at $0.7 billion, and payments for compensation of foreign workers in the United States were virtually unchanged at $2.4 billion. Unilateral current transfers Net unilateral current transfers to foreigners were $25.8 billion in the third quarter, up from $23.2 billion in the second. The increase mainly resulted from increases in U.S. Government grants and in private remittances and other transfers. Capital Account Net capital account payments (outflows) were virtually unchanged at $0.6 billion in the third quarter. Financial Account Net financial inflows--net acquisitions by foreign residents of assets in the United States less net acquisitions by U.S. residents of assets abroad-- were $93.4 billion in the third quarter, down from $152.8 billion in the second. Net foreign acquisitions of assets in the United States slowed more than net U.S. acquisitions of assets abroad. U.S.-owned assets abroad U.S.-owned assets abroad increased $155.7 billion in the third quarter, following an increase of $465.5 billion in the second. U.S. claims on foreigners reported by U.S. banks increased $111.3 billion in the third quarter, following an increase of $211.0 billion in the second. Net U.S. purchases of foreign securities were $78.8 billion in the third quarter, down from $82.2 billion in the second. Net U.S. purchases of foreign stocks were $35.7 billion, down from $40.4 billion. Net U.S. purchases of foreign bonds were $43.2 billion, up from $41.8 billion. Net financial flows for U.S. direct investment abroad were $56.3 billion in the third quarter, down from $78.0 billion in the second. A substantial slowdown in net equity capital investment abroad and a slightly larger decrease in net intercompany debt investment abroad were partly offset by a pickup in reinvested earnings. U.S. official reserve assets increased $0.1 billion in the third quarter, following a decrease of less than $0.1 billion in the second. Foreign-owned assets in the United States Foreign-owned assets in the United States increased $249.1 billion in the third quarter, following an increase of $619.3 billion in the second. U.S. liabilities to foreigners reported by U.S. banks increased $69.8 billion in the third quarter, following an increase of $144.0 billion in the second. Net foreign purchases of U.S. Treasury securities were $46.7 billion in the third quarter, up from $1.8 billion in the second. Transactions in U.S. securities other than U.S. Treasury securities shifted to net foreign sales of $44.2 billion in the third quarter from net foreign purchases of $243.0 billion in the second. Transactions in U.S. stocks shifted to net foreign sales of $19.7 billion from net foreign purchases of $104.1 billion. Transactions in U.S. corporate bonds shifted to net foreign sales of $8.2 billion from net foreign purchases of $109.7 billion. Transactions in federally sponsored agency bonds shifted to net foreign sales of $16.2 billion from net foreign purchases of $29.1 billion. Net financial flows for foreign direct investment in the United States were $81.2 billion in the third quarter, up from $46.6 billion in the second. The increase was accounted for by increases in net equity capital investment in the United States and in reinvested earnings and by a shift from a decrease to an increase in net intercompany debt investment in the United States. Foreign official assets in the United States increased $39.0 billion in the third quarter, following an increase of $70.5 billion in the second. Net U.S. currency shipments to foreigners were $4.7 billion in the third quarter, up from $3.3 billion in the second. The statistical discrepancy--errors and omissions in recorded transactions--was a positive $85.6 billion in the third quarter, compared with a positive $36.7 billion in the second. In the third quarter, the U.S. dollar depreciated 3 percent on a trade- weighted quarterly average basis against a group of 7 major currencies. Revisions The second-quarter international transactions are revised from previously published estimates. The current-account deficit was revised to $188.9 billion from $190.8 billion. The goods deficit was unrevised at $204.2 billion; the services surplus was revised to $25.8 billion from $26.5 billion; the income surplus was revised to $12.7 billion from $9.4 billion; and unilateral current transfers were revised to net outflows of $23.2 billion from $22.5 billion. Net recorded financial inflows were revised to $152.8 billion from $150.9 billion. * * * Release dates in 2008: Fourth quarter and year 2007....................March 17, 2008 (Monday) First quarter 2008..............................June 17, 2008 (Tuesday) Second quarter 2008......................September 17, 2008 (Wednesday) Third quarter 2008........................December 17, 2008 (Wednesday) * * * Summary BEA estimates are available on recorded messages at the time of public release at the following telephone numbers: (202) 606-5306 Gross domestic product -5303 Personal income and outlays BEAs national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEAs Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.