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      The U.S. current-account deficit--the combined balances on trade in goods
and services, income,  and net unilateral current transfers--increased to
$176.4 billion (preliminary) in the first quarter of 2008 from $167.2 billion
(revised) in the fourth quarter of 2007.  The increase was mostly accounted for
by a decrease in the surplus on income.  In addition, the deficit on goods and
net unilateral current transfers to foreigners both increased.  An increase in
the surplus on services was partly offsetting.

Goods and services

      The deficit on goods and services increased to $174.9 billion in the
first quarter from $173.8 billion in the fourth.

      Goods

      The deficit on goods increased to $211.0 billion in the first quarter
from $208.9 billion in the fourth.

      Goods exports increased to $317.8 billion from $303.2 billion.  The
largest increases were in nonagricultural industrial supplies and materials and
in agricultural products.  Consumer goods also increased.

      Goods imports increased to $528.8 billion from $512.1 billion.  The
increase largely resulted from an increase in petroleum and products.  Among
nonpetroleum products, the largest increase was in nonpetroleum industrial
supplies and materials.

      Services

      The surplus on services increased to $36.1 billion in the first quarter
from $35.1 billion in the fourth.

      Services receipts increased to $136.5 billion from $132.3 billion.  The
increase was largely accounted for by increases in other private services
(such as business, professional, and technical services, insurance services,
and financial services) and in other transportation (such as freight and port
services).

      Services payments increased to $100.3 billion from $97.1 billion.  The
increase was largely accounted for by increases in travel, in other
transportation, in passenger fares, and in other private services.

Income

      The surplus on income decreased to $29.8 billion in the first quarter
from $36.3 billion in the fourth.

      Investment income

      Income receipts on U.S.-owned assets abroad decreased to $198.7 billion
from $214.6 billion.  The decrease was largely accounted for by a decrease in
other private receipts (which consists of interest and dividends).  Direct
investment receipts also decreased.

      Income payments on foreign-owned assets in the United States decreased to
$167.1 billion from $176.4 billion.  The decrease was more than accounted for
by a decrease in other private payments (which consists of interest and
dividends).  In contrast, direct investment payments increased.

      Compensation of employees

      Receipts for compensation of U.S. workers abroad were virtually unchanged
at $0.8 billion, and payments for compensation of foreign workers in the United
States were virtually unchanged at $2.6 billion.

Unilateral current transfers

      Net unilateral current transfers to foreigners were $31.2 billion in the
first quarter, up from $29.8 billion in the fourth.  The increase was mostly
accounted for by an increase in private remittances and other transfers.

                                Capital Account

      Net capital account payments (outflows) were virtually unchanged at $0.6
billion in the first 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 $124.3 billion in the first quarter, down from $213.4 billion in the
fourth.  Net acquisitions by U.S. residents picked up more than net
acquisitions by foreign residents.

U.S.-owned assets abroad

      U.S.-owned assets abroad increased $286.6 billion in the first quarter,
following an increase of $153.8 billion in the fourth.

      U.S. claims on foreigners reported by U.S. banks increased $218.9 billion
in the first quarter, following an increase of $115.9 billion in the fourth.

      Net U.S. purchases of foreign securities were $38.8 billion in the first
quarter, up from $4.2 billion in the fourth.  Transactions in foreign stocks
shifted to net U.S. purchases of $28.0 billion from net U.S. sales of $9.3
billion.  Net U.S. purchases of foreign bonds were $10.8 billion, down from
$13.5 billion.

      U.S. direct investment abroad increased $85.6 billion in the first
quarter, following an increase of $110.9 billion in the fourth.  The slowdown
resulted from slowdowns in reinvested earnings, in net intercompany debt
investment abroad, and in net equity capital investment abroad.

      U.S. official reserve assets increased $0.3 billion in the first quarter,
following an increase of less than $0.1 billion in the fourth.

      U.S. Government assets other than official reserve assets decreased $3.3
billion in the first quarter, following an increase of $22.7 billion in the
fourth.

Foreign-owned assets in the United States

      Foreign-owned assets in the United States increased $411.0 billion in the
first quarter, following an increase of $380.4 billion in the fourth.

      U.S. liabilities to foreigners reported by U.S. banks increased $85.7
billion in the first quarter, following an increase of $124.0 billion in the
fourth.

      Net foreign purchases of U.S. Treasury securities were $68.9 billion in
the first quarter, up from $60.1 billion in the fourth.

      Transactions in U.S. securities other than U.S. Treasury securities
shifted to net foreign sales of $20.1 billion in the first quarter from net
foreign purchases of $110.5 billion in the fourth.  Net foreign purchases of
U.S. stocks were $8.7 billion, down from $56.2 billion.  Transactions in U.S.
corporate bonds shifted to net foreign sales of $10.6 billion from net foreign
purchases of $37.9 billion.  Transactions in U.S. federally sponsored agency
bonds shifted to net foreign sales of $18.3 billion from net foreign purchases
of $16.4 billion.

      Foreign direct investment in the United States increased $46.6 billion in
the first quarter, following an increase of $55.7 billion in the fourth.  The
slowdown was more than accounted for by a shift from an increase to a decrease
in net intercompany debt investment in the United States.  In contrast, net
equity capital investment in the United States and reinvested earnings both
picked up.

      Foreign official assets in the United States increased $173.5 billion in
the first quarter, following an increase of $145.5 billion in the fourth.

      Net shipments of U.S. currency to the United States were $0.9 billion in
the first quarter, down from net shipments to the United States of $3.5 billion
in the fourth.

      The statistical discrepancy--errors and omissions in recorded
transactions--was a positive $52.6 billion in the first quarter, compared with
a negative $45.6 billion in the fourth.

      In the first quarter, the U.S. dollar depreciated 2 percent on a trade-
weighted quarterly average basis against a group of 7 major currencies.

                                   Revisions

      As is customary each June, estimates of U.S. international transactions
are updated and revised to incorporate newly available source data and improved
estimating methodologies.  The major changes this year are summarized below.

  *   Services receipts and payments are revised for 2006-2007 to incorporate
the results of BEAs benchmark survey of international services transactions
for 2006 and of BEAs new follow-on survey of international services
transactions for 2007.  Services receipts and payments are also revised for
2004-2005 to incorporate updated source data for those years.

  *   U.S. direct investment abroad financial flows and income receipts are
revised to incorporate the results of BEAs benchmark survey of U.S. direct
investment abroad for 2004.

  *   For foreign securities, financial flows and interest receipts for foreign
bonds and dividend receipts for foreign stocks are revised for 2006-2007 to
incorporate results of the U.S. Treasury Departments benchmark survey of
securities claims for December 2006.  The same accounts are revised for 2002-
2005 to adjust the results from earlier annual surveys.

  *   For U.S. securities, financial flows and interest payments for U.S.
corporate bonds, U.S. Treasury bonds, and U.S. agency bonds and dividend
payments for U.S. stocks are revised for 2006-2007 to incorporate results of
the U.S. Treasury Departments annual survey of securities liabilities for
June 2007.

  *   Net U.S. currency shipments to foreign banks from U.S. banks are revised
for 1974-2007.

      Estimates of U.S. international transactions are revised for 1974-2007,
although the only revisions for 1974-2001 are for net U.S. currency shipments.
Revised estimates for the detailed components of the U.S. international
transactions accounts for 2006-2007 are shown in table 1.  Summary information
on revisions for 1997-2007 is shown in table 2.

      Preliminary estimates for 2007 and revised estimates for 1976-2006 of the
U.S. net international investment position will be released on June 27.  Nearly
all of the revisions are concentrated in 2002-2006.

      The fourth-quarter 2007 international transactions are revised from
previously published estimates.  Revisions reflect both newly available source
data for the fourth quarter and changes from all of the above sources of
revision.  The current-account deficit was revised to $167.2 billion from
$172.9 billion.  The goods deficit was revised to $208.9 billion from $208.1
billion; the services surplus was revised to $35.1 billion from $30.2 billion;
the income surplus was revised to $36.3 billion from $33.0 billion; and
unilateral current transfers were revised to net outflows of $29.8 billion
from $28.1 billion.  Net financial inflows were revised to $213.4 billion from
$230.1 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
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