News Release
U.S. International Transactions, 2nd quarter 2010
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Sarah Scott Thomas: | (202) 606-9286 |
U.S. International Transactions: Second Quarter 2010
Current Account The U.S. current-account deficitthe combined balances on trade in goods and services, income, and net unilateral current transfersincreased to $123.3 billion (preliminary) in the second quarter of 2010, from $109.2 billion (revised) in the first quarter of 2010. The increase was the fourth consecutive quarterly increase since the deficit of $84.4 billion in the second quarter of 2009, which was the smallest deficit since the third quarter of 1999. The increase was more than accounted for by an increase in the deficit on goods. Increases in the surpluses on services and income and a drop in net unilateral current transfers were partly offsetting. Goods and services The deficit on goods and services increased to $131.6 billion in the second quarter from $114.5 billion in the first. Goods The deficit on goods increased to $169.6 billion in the second quarter from $151.3 billion in the first. Goods exports increased to $316.1 billion from $305.6 billion. Most major end-use categories increased in the second quarter. Industrial supplies and materials and capital goods more than accounted for the increase in exports. Within the industrial supplies and materials category, petroleum and products accounted for much of the increase, with metals and nonmetallic products also contributing to the gain. A decrease in foods, feeds, and beverages, primarily soybeans, offset some of the other gains in exports. Goods imports increased to $485.7 billion from $457.0 billion. Most major end-use categories increased; most of the increase was accounted for by capital goods, automotive products, and consumer goods. Within capital goods, computers were particularly strong. The increase in automotive products was mostly accounted for by passenger cars. Consumer goods increased as a result of pickups in both durable and nondurable goods. Services The surplus on services increased to $38.0 billion in the second quarter from $36.9 billion in the first. Services receipts increased to $135.9 billion from $133.3 billion. Within services, the largest increases were in other private services, royalties and license fees, and passenger fares. Most of the other services categories also increased. Services payments increased to $97.9 billion from $96.4 billion. The increase was more than accounted for by other transportation and other private services. Decreases in travel and royalties and license fees were partly offsetting. Income The surplus on income increased to $41.2 billion in the second quarter from $40.2 billion in the first. Investment income Income receipts on U.S.-owned assets abroad increased to $161.1 billion from $160.5 billion. The increase was more than accounted for by other private receipts (which consists of interest and dividends). Direct investment receipts and U.S. government receipts declined. Income payments on foreign-owned assets in the United States declined to $117.8 billion from $118.3 billion. The decrease was more than accounted for by direct investment payments. Other private payments (which consists of interest and dividends) and U.S. government payments increased. Compensation of employees Receipts for compensation of U.S. workers abroad remained at $0.8 billion in the second quarter. Payments for compensation of foreign workers in the United States increased to $2.9 billion from $2.8 billion. Unilateral current transfers Net unilateral current transfers to foreigners were $32.9 billion in the second quarter, down from $34.9 billion in the first. The decrease was more than accounted for by U.S. government grants. Capital Account Net capital account payments (outflows) remained close to zero for the second consecutive quarter. Financial Account Net financial inflows were $36.6 billion in the second quarter, up from $34.7 billion in the first. Growth in both U.S.-owned assets abroad and foreign- owned assets in the United States slowed, but the slowdown in U.S.-owned assets abroad exceeded that of foreign-owned assets in the United States. U.S.-owned assets abroad U.S.-owned assets abroad increased $139.1 billion in the second quarter, following an increase of $301.4 billion in the first. U.S. claims on foreigners reported by U.S. banks and securities brokers increased $16.5 billion in the second quarter, following an increase of $171.8 billion in the first. (Examples of these claims are U.S. banks deposits at foreign banks and U.S. banks loans to foreigners.) Net U.S. purchases of foreign securities were $20.7 billion in the second quarter following net U.S. purchases of $46.1 billion in the first. Net U.S. purchases of foreign stocks increased to $22.2 billion from $10.8 billion. Transactions in foreign bonds shifted to net U.S. sales of $1.5 billion from net U.S. purchases of $35.4 billion. U.S. direct investment abroad was $81.5 billion in the second quarter, down from $102.9 billion in the first. The decrease in direct investment was mostly accounted for by a decrease in net equity investment; reinvested earnings also contributed. U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns increased $17.9 billion in the second quarter, following a decrease of $10.8 billion in the first. U.S. official reserve assets increased $0.2 billion in the second quarter, following an increase of $0.8 billion in the first. U.S. government assets other than official reserve assets increased $2.4 billion in the second quarter, following a decrease of $9.4 billion in the first. Foreign-owned assets in the United States Foreign-owned assets in the United States increased $175.6 billion in the second quarter, following an increase of $320.2 billion in the first. U.S. liabilities to foreigners reported by U.S. banks and securities brokers (other than foreign official assets) decreased $12.0 billion in the second quarter, following an increase of $63.8 billion in the first. (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 private foreign purchases of U.S. Treasury securities were $99.0 billion in the second quarter, down from $103.1 billion in the first. Net private foreign transactions in U.S. securities other than U.S. Treasury securities shifted to net foreign sales of $5.7 billion in the second quarter from net foreign purchases of $6.1 billion in the first. Transactions in U.S. federally sponsored agency bonds shifted to net foreign purchases of $8.1 billion in the second quarter, from net sales of $1.5 billion in the first. Net foreign sales of U.S. corporate bonds were $18.1 billion, down from $28.1 billion. Net foreign purchases of U.S. stocks were $4.2 billion, down from $35.6 billion. Foreign direct investment in the United States was $27.2 billion in the second quarter, following investment of $51.6 billion in the first. The decrease was more than accounted for by a shift in net intercompany debt investment in the United States to net outflows from net inflows. In contrast, equity investment and reinvested earnings both increased. U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns increased $15.4 billion in the second quarter, following an increase of $20.9 billion in the first. Foreign official assets in the United States increased $49.6 billion in the second quarter, following an increase of $72.5 billion in the first. Net shipments of U.S. currency to foreign countries were $2.1 billion in the second quarter, down from $2.3 billion in the first. The statistical discrepancyerrors and omissions in recorded transactionswas $86.7 billion in the second quarter compared to $74.5 billion in the first. In the second quarter, the U.S. dollar appreciated 3.7 percent on a trade- weighted quarterly average basis against a group of 7 major currencies. Revisions The first-quarter 2010 international transactions are revised from previously published statistics. The current-account deficit was revised to $109.2 billion from $109.0 billion. The goods deficit was virtually unrevised at $151.3 billion; the services surplus was revised to $36.9 billion from $36.0 billion; the income surplus was revised to $40.2 billion from $41.7 billion; and unilateral current transfers were revised to net outflows of $34.9 billion from $35.5 billion. Net financial inflows were revised to $34.7 billion from $31.3 billion. * * * Release dates in 2010: Fourth quarter and year 2009...................March 18, 2010 (Thursday) First quarter 2010..............................June 17, 2010 (Thursday) Second quarter 2010........................September 16, 2010 (Thursday) Third quarter 2010..........................December 16, 2010 (Thursday) * * * 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.