News Release
U.S. International Transactions: First Quarter 2009
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Douglas B. Weinberg: | (202) 606-9590 | (Data) |
Paul W. Farello: | (202) 606-9561 | (Revisions) |
U.S. International Transactions: First Quarter 2009
Current Account The U.S. current-account deficitthe combined balances on trade in goods and services, income, and net unilateral current transfersdecreased to $101.5 billion (preliminary) in the first quarter of 2009, the smallest deficit since the fourth quarter of 2001, from $154.9 billion (revised) in the fourth quarter of 2008. The decrease was more than accounted for by a decrease in the deficit on goods. A decrease in net unilateral current transfers to foreigners also contributed to the decrease in the current-account deficit. Decreases in the surpluses on income and on services were partly offsetting. Goods and services The deficit on goods and services decreased to $91.2 billion in the first quarter from $144.5 billion in the fourth. Goods The deficit on goods decreased to $124.0 billion in the first quarter from $178.8 billion in the fourth. Goods exports decreased to $249.4 billion from $290.6 billion. All major and most sub-major commodity categories decreased. The largest decrease was in industrial supplies and materials, partly reflecting declines in chemicals, in metals and nonmetallic products, and in petroleum and products. The next largest decrease was in capital goods, particularly in other industrial, agricultural, and service industry machinery, in oil drilling, mining, and construction machinery, and in semiconductors. Automotive products also decreased substantially, mostly reflecting a drop in passenger cars. Goods imports decreased to $373.4 billion from $469.4 billion. All major and most sub-major commodity categories decreased. More than one-third of the decrease in total imports was accounted for by petroleum and products. The next largest decrease was in nonpetroleum industrial supplies and materials, particularly in metals and nonmetallic products and in chemicals. Automotive products decreased substantially, largely reflecting a drop in passenger cars. Among capital goods, the largest decreases were in other industrial, agricultural, and service industry machinery, in electric generating machinery, electric apparatus, and parts, in oil drilling, mining, and construction machinery, in computers, peripherals, and parts, and in telecommunications equipment. Services The surplus on services decreased to $32.8 billion in the first quarter from $34.3 billion in the fourth. Services receipts decreased to $125.9 billion from $133.6 billion. The decrease was mostly accounted for by decreases in other transportation (such as freight and port services), in travel, in other private services (such as business, professional, and technical services, insurance services, and financial services), in passenger fares, and in royalties and license fees. Services payments decreased to $93.1 billion from $99.3 billion. The decrease was largely accounted for by decreases in other transportation, in passenger fares, and in travel. All other major services categories also decreased. Income The surplus on income decreased to $19.3 billion in the first quarter from $21.1 billion in the fourth. Investment income Income receipts on U.S.-owned assets abroad decreased to $133.5 billion from $166.8 billion. The decrease was more than accounted for by decreases 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 decreased to $112.4 billion from $143.8 billion. The decrease was mostly accounted for by decreases in direct investment payments and in other private payments (which consists of interest and dividends). U.S. government payments also decreased. 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 $2.6 billion. Unilateral current transfers Net unilateral current transfers to foreigners were $29.6 billion in the first quarter, down from $31.5 billion in the fourth. The decrease was mostly accounted for by a decrease in U.S. government grants. Capital Account Net capital account payments (outflows) were virtually unchanged at $0.7 billion in the first quarter. Financial Account Net financial inflows were $47.1 billion in the first quarter, down from $88.3 billion in the fourth. The slowdown resulted from a pickup in financial outflows for foreign-owned assets in the United States (a larger decrease in foreign-owned assets) that was only partly offset by a pickup in financial inflows for U.S.-owned assets abroad (a larger decrease in U.S.-owned assets). U.S.-owned assets abroad U.S.-owned assets abroad decreased $125.2 billion in the first quarter, following a decrease of $114.7 billion in the fourth. U.S. claims on foreigners reported by U.S. banks increased $90.9 billion in the first quarter, following a decrease of $293.9 billion in the fourth. (Examples of these claims are U.S. banks deposits at foreign banks and U.S. banks loans to foreigners.) Transactions in foreign securities shifted to net U.S. purchases of $35.3 billion in the first quarter from net U.S. sales of $70.0 billion in the fourth. Net U.S. purchases of foreign stocks were $1.5 billion, a shift from net U.S. sales of $35.1 billion. Net U.S. purchases of foreign bonds were $33.8 billion, a shift from net U.S. sales of $34.9 billion. U.S. direct investment abroad increased $24.0 billion in the first quarter, following an increase of $84.5 billion in the fourth. The slowdown resulted from slowdowns in net equity capital investment abroad and in reinvested earnings and from a larger decrease in net intercompany debt investment abroad in the first quarter than in the fourth quarter. U.S. official reserve assets increased $1.0 billion in the first quarter, following an increase of $3.1 billion in the fourth. U.S. government assets other than official reserve assets decreased $244.1 billion in the first quarter, following an increase of $265.3 billion in the fourth. The shift resulted from a shift from net drawings to net repayments on temporary reciprocal currency arrangements between the U.S. Federal Reserve System and foreign central banks. Foreign-owned assets in the United States Foreign-owned assets in the United States decreased $78.1 billion in the first quarter, following a decrease of $11.9 billion in the fourth. U.S. liabilities to foreigners reported by U.S. banks decreased $163.7 billion in the first quarter, following a decrease of $35.2 billion in the fourth. (Examples of these liabilities are deposits of foreign residents at banks in the United States and loans by banks abroad to banks in the United States.) Net foreign purchases of U.S. Treasury securities were $56.9 billion in the first quarter, down from $81.5 billion in the fourth. Net foreign sales of U.S. securities other than U.S. Treasury securities were $54.9 billion in the first quarter, up from $29.0 billion in the fourth. Net foreign sales of U.S. federally sponsored agency bonds were $45.3 billion, up from $21.4 billion. Net foreign sales of U.S. corporate bonds were $15.5 billion, up from $3.8 billion. Transactions in U.S. stocks shifted to net foreign purchases of $6.0 billion from net foreign sales of $3.9 billion. Foreign direct investment in the United States increased $35.3 billion in the first quarter, following an increase of $96.8 billion in the fourth. The slowdown was more than accounted for by a slowdown in net equity capital investment in the United States and, to a much lesser extent, a shift from positive to negative reinvested earnings. In contrast, net intercompany debt investment in the United States increased in the first quarter after decreasing in the fourth quarter. Foreign official assets in the United States increased $71.2 billion in the first quarter, following a decrease of $16.0 billion in the fourth. Net U.S. currency shipments to foreigners were $11.8 billion in the first quarter, down from $29.9 billion in the fourth. The statistical discrepancyerrors and omissions in recorded transactions was $55.1 billion in the first quarter, compared with $67.2 billion in the fourth. In the first quarter, the U.S. dollar appreciated 2 percent on a trade- weighted quarterly average basis against a group of 7 major currencies. Revisions Statistics from the U.S. international transactions accounts have been updated and revised to incorporate newly available source data, improved estimating methodologies, and a change in definition that affects the current account and the capital account. For this annual revision, the most important change is a new treatment of certain disaster-related insurance losses that is consistent with new international standards and with the treatment that will be introduced in the forthcoming comprehensive revision of the National Income and Product Accounts. Other changes introduced in this annual revision are summarized below. * Exports and imports of goods on a balance of payments basis are revised for 2001-2008. Revisions to exports reflect revised Census Bureau source data for aircraft and improved procedures for excluding goods that are included in transfers under U.S. military agency sales contracts. Revisions to imports incorporate new source data for improved coverage of locomotives and railcars. * Services receipts and payments are revised for 2006-2008 to incorporate updated and revised data from BEAs benchmark and quarterly surveys of selected international services transactions. In addition, transfers under U.S. military agency sales contracts are revised to more completely reflect the use of U.S. government grants to fund the training of local security forces in Iraq and Afghanistan. * Direct investment financial flows and income receipts and payments are revised for 2006-2008 to incorporate new data from BEAs quarterly and annual surveys of U.S. direct investment abroad and foreign direct investment in the United States. * For foreign securities, financial flows and interest receipts for foreign bonds and dividend receipts for foreign stocks are revised for 2006-2008 to incorporate results of the U.S. Treasury Departments annual survey of securities claims for December 2007 and other new source data. * 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 2006-2008 to incorporate results of the U.S. Treasury Departments annual survey of securities liabilities for June 2008 and other new source data. Statistics of U.S. international transactions are revised for 1992 and for 2001-2008. The revisions for 1992 are entirely due to the new treatment of certain disaster-related insurance losses. Revised statistics for the detailed components of the U.S. international transactions accounts for 2007-2008 are shown in table 1. Summary information on revisions for 1992 and for 2001-2008 is shown in table 2. Preliminary statistics for 2008 and revised statistics for 2006-2007 of the U.S. net international investment position will be released on June 26. The fourth-quarter 2008 international transactions are revised from previously published statistics. 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 $154.9 billion from $132.8 billion. The goods deficit was revised to $178.8 billion from $174.1 billion; the services surplus was revised to $34.3 billion from $33.7 billion; the income surplus was revised to $21.1 billion from $36.5 billion; and unilateral current transfers were revised to net outflows of $31.5 billion from $28.9 billion. Net financial inflows were revised to $88.3 billion from $76.8 billion. * * * Release dates in 2009: Fourth quarter and year 2008..................March 18, 2009 (Wednesday) First quarter 2009.............................June 17, 2009 (Wednesday) Second quarter 2009.......................September 16, 2009 (Wednesday) Third quarter 2009.........................December 16, 2009 (Wednesday) * * * Summary BEA statistics 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 statistics; 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.