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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
$183.1 billion (preliminary) in the second quarter of 2008 from $175.6 billion
(revised) in the first quarter.  The increase was more than accounted for by a
decrease in the surplus on income and an increase in the deficit on goods.  In
contrast, the surplus on services increased, and net unilateral current
transfers to foreigners decreased.

Goods and services

        The deficit on goods and services increased to $180.6 billion in the
second quarter from $177.1 billion in the first.

        Goods

        The deficit on goods increased to $216.3 billion in the second quarter
from $211.0 billion in the first.

        Goods exports increased to $337.3 billion from $317.8 billion.  More
than half of the increase resulted from an increase in industrial supplies and
materials, including energy products.  The next largest increases were in
capital goods, in agricultural products, and in consumer goods.

        Goods imports increased to $553.6 billion from $528.8 billion.  Nearly
half of the increase resulted from an increase in petroleum and products.  The
next largest increases were in nonpetroleum industrial supplies and materials,
in capital goods, and in consumer goods.

        Services

        The surplus on services increased to $35.8 billion in the second
quarter from $33.9 billion in the first.

        Services receipts increased to $137.5 billion from $133.8 billion.  The
increase was largely accounted for by increases in other private services
(which includes items such as business, professional, and technical services,
insurance services, and financial services), in travel, in other transportation
(which includes freight and port services), and in royalties and license fees.

        Services payments increased to $101.7 billion from $99.9 billion.  The
increase was largely accounted for by increases in other transportation and
in other private services.

Income

        The surplus on income decreased to $27.3 billion in the second quarter
from $33.2 billion in the first.

        Investment income

        Income receipts on U.S.-owned assets abroad decreased to $194.1 billion
from $199.1 billion.  The decrease was more than accounted for by a decrease in
other private receipts (which consists of interest and dividends).  In
contrast, direct investment receipts increased.

        Income payments on foreign-owned assets in the United States increased
to $165.0 billion from $164.1 billion.  The increase was more than accounted
for by an increase in direct investment payments.  In contrast, other private
payments decreased.

        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 also virtually unchanged, at $2.5 billion.

Unilateral current transfers

        Net unilateral current transfers to foreigners were $29.9 billion in
the second quarter, down from $31.7 billion in the first.  The decrease was more
than accounted for by a decrease in U.S. government grants.  In contrast,
private remittances and other transfers increased.


                                Capital Account

        Net capital account payments (outflows) were $0.7 billion in the second
quarter, up slightly from $0.6 billion in the first.

                                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 $136.7 billion in the second quarter, down from $190.4 billion in the
first.  Net acquisitions by foreign residents slowed sharply, and transactions
by U.S. residents resulted in a decrease in U.S.-owned assets abroad in the
second quarter, following an increase in the first quarter.

U.S.-owned assets abroad

        U.S.-owned assets abroad decreased $110.4 billion in the second quarter,
following an increase of $260.6 billion in the first.

        U.S. claims on foreigners reported by U.S. banks decreased $225.7
billion in the second quarter, following an increase of $221.3 billion in the
first.

        Net U.S. purchases of foreign securities were $32.5 billion in the
second quarter, down from $35.1 billion in the first.  Net U.S. purchases of
foreign stocks were $21.3 billion, down from $26.9 billion.  Net U.S. purchases
of foreign bonds were $11.1 billion, up from $8.2 billion.

        U.S. direct investment abroad increased $65.5 billion in the second
quarter, following an increase of $89.1 billion in the first.  The slowdown
resulted from a shift from an increase to a decrease in net intercompany debt
investment abroad and a slowdown in net equity capital investment.  In contrast,
reinvested earnings picked up.

        U.S. official reserve assets increased $1.3 billion in the second
quarter, following an increase of $0.3 billion in the first.

        U.S. government assets other than official reserve assets increased
$41.3 billion in the second quarter, following a decrease of $3.3 billion in
the first.

Foreign-owned assets in the United States

        Foreign-owned assets in the United States increased $26.3 billion in the
second quarter, following an increase of $459.0 billion in the first.

        U.S. liabilities to foreigners reported by U.S. banks decreased $233.6
billion in the second quarter, following an increase of $79.1 billion in the
first.

        Net foreign purchases of U.S. Treasury securities were $67.0 billion in
the second quarter, up from $63.3 billion in the first.

        Transactions in U.S. securities other than U.S. Treasury securities
shifted to net foreign purchases of $16.5 billion in the second quarter from
net foreign sales of $20.5 billion in the first.  The shift was more than
accounted for by a shift to net foreign purchases of $50.5 billion of U.S.
corporate bonds from net foreign sales of $10.7 billion.  In contrast,
transactions in U.S. stocks shifted to net foreign sales of $1.1 billion from
net foreign purchases of $8.3 billion, and net foreign sales of U.S. federally
sponsored agency bonds were $32.8 billion, up from $18.0 billion.

        Foreign direct investment in the United States increased $93.8 billion
in the second quarter, following an increase of $80.4 billion in the first.
The pickup was largely accounted for by a pickup in reinvested earnings.  In
addition, net equity capital investment in the United States and net
intercompany debt investment both increased.

        Foreign official assets in the United States increased $144.4 billion
in the second quarter, following an increase of $173.5 billion in the first.

        Transactions in U.S. currency shifted to net shipments to foreign
countries of $0.2 billion in the second quarter from net shipments to the United
States of $0.9 billion in the first.

        The statistical discrepancy--errors and omissions in recorded
transactions--was a positive $47.1 billion in the second quarter, compared with
a negative $14.1 billion in the first.

        In the second quarter, the U.S. dollar depreciated 2 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 was revised to
$175.6 billion from $176.4 billion.  The goods deficit was unrevised at $211.0
billion; the services surplus was revised to $33.9 billion from $36.1 billion;
the income surplus was revised to $33.2 billion from $29.8 billion; and
unilateral current transfers were revised to net outflows of $31.7 billion from
$31.2 billion.  Net financial inflows were revised to $190.4 billion from
$124.3 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

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Survey of Current Business; and BEA news releases are available without charge
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