FOR WIRE TRANSMISSION: 8:30 A.M. EDT, THURSDAY, September 19, 2013 Sarah P. Scott: (202) 606-9286 BEA 13-43 U.S. International Transactions: Second Quarter 2013 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 $98.9 billion (preliminary) in the second quarter from $104.9 billion (revised) in the first quarter. The decrease in the current- account deficit was accounted for by a decrease in the deficit on goods, an increase in the surplus on income, and an increase in the surplus on services. These changes were partly offset by an increase in net outflows of unilateral current transfers, such as government grants, government pensions and other transfers, and private remittances. Goods and services The deficit on goods and services decreased to $117.8 billion in the second quarter from $122.6 billion in the first. Goods The deficit on goods decreased to $175.7 billion in the second quarter from $179.5 billion in the first. Goods exports increased to $394.7 billion from $390.7 billion. Exports in four of the six major end-use categories increased. The largest increases were in capital goods and in consumer goods. The increase in capital goods was largely due to an increase in civilian aircraft, engines, and parts. The largest decrease was in foods, feeds, and beverages and was mostly due to a decrease in soybeans (Table 2a) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=3). Goods imports increased to $570.4 billion from $570.2 billion. Increases in five of the six major end-use categories were nearly offset by a substantial decrease in industrial supplies and materials. The largest increase was in automotive vehicles, parts, and engines, much of that in passenger cars. The decrease in industrial supplies and materials was mostly due to a decrease in petroleum and products (Table 2a) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=3). Services The surplus on services increased to $57.9 billion in the second quarter from $56.8 billion in the first. Services exports increased to $169.2 billion from $167.2 billion. Exports increased in five of the seven major services categories. More than half the increase was in other private services, primarily in financial services and in business, professional, and technical services (Table 3a) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=7). Services imports increased to $111.3 billion from $110.4 billion. Imports increased in six of the seven major services categories. The largest increases were in travel and in other transportation (Table 3a) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=7). Income The surplus on income increased to $53.1 billion in the second quarter from $50.9 billion in the first. Investment income Income receipts on U.S.-owned assets abroad increased to $190.8 billion from $190.0 billion. The increase was more than accounted for by an increase in other private receipts, which consists of interest and dividends. Direct investment receipts and U.S. government receipts decreased (Table 4) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=11). Income payments on foreign-owned assets in the United States decreased to $135.6 billion from $137.1 billion. The decrease was more than accounted for by decreases in direct investment payments and in U.S. government payments. Other private payments increased (Table 4) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=11). Compensation of employees Receipts for compensation of U.S. residents paid by nonresidents were $1.7 billion in the second quarter, up from $1.6 billion in the first. Payments for compensation of foreign residents paid by U.S. residents were $3.8 billion in the second quarter, up from $3.7 billion in the first. Unilateral current transfers Net unilateral current transfers to foreigners were $34.2 billion in the second quarter, up from $33.1 billion in the first. The increase was mostly due to an increase in net outflows of U.S. government pensions and other transfers that resulted from a decrease in fines and penalties received by the U.S. government from foreign corporations. U.S. government grants to foreigners also increased. Capital Account Net capital-account transactions are not available for the second quarter because source data are not yet available. In the first quarter, net payments were less than $0.1 billion. Financial Account Net financial inflows were $73.1 billion in the second quarter, up from $40.4 billion in the first. U.S.-owned assets abroad and foreign-owned assets in the United States both increased less than in the first quarter, and outflows of U.S.-owned assets abroad were down more relative to the first quarter than were inflows of foreign-owned assets in the United States. Net inflows of financial derivatives decreased in the second quarter. U.S.-owned assets abroad U.S.-owned assets abroad increased $109.6 billion in the second quarter after increasing $229.1 billion in the first. U.S. official reserve assets decreased $0.2 billion in the second quarter after increasing $0.9 billion in the first. The second-quarter decrease reflected a decrease in the U.S. reserve position in the International Monetary Fund. U.S. government assets other than official reserve assets decreased $3.9 billion in the second quarter after increasing $0.4 billion in the first. The decrease reflected a reduction of central bank liquidity swaps between the U.S. Federal Reserve System and foreign central banks. U.S. direct investment abroad was $95.5 billion in the second quarter, up from $84.1 billion in the first. The increase was more than accounted for by a shift in equity investment to net outflows in the second quarter from net inflows in the first quarter (Table 7a) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=15). U.S. purchases of foreign securities exceeded sales (net purchases) by $80.1 billion in the second quarter, down from net purchases of $133.8 billion in the first. Net purchases of foreign bonds were $3.8 billion, down from net purchases of $60.0 billion in the first. Net purchases of foreign stocks were $76.3 billion, up from net purchases of $73.8 billion in the first (Table 8a) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=19). U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns increased $67.1 billion in the second quarter after increasing $22.4 billion in the first. An example of these claims is deposits of U.S. nonbanks at foreign banks. U.S. claims on foreigners reported by U.S. banks and securities brokers decreased $129.0 billion in the second quarter after decreasing $12.6 billion in the first. Examples of these claims are deposits of U.S. banks at foreign banks and loans by U.S. banks to foreigners. Foreign-owned assets in the United States Foreign-owned assets in the United States increased $179.3 billion in the second quarter after increasing $265.5 billion in the first. Foreign official assets in the United States decreased $9.7 billion in the second quarter after increasing $126.9 billion in the first. The second-quarter decrease was more than accounted for by net sales of U.S. government securities. Foreign direct investment in the United States was $37.9 billion in the second quarter, up from $28.6 billion in the first. The increase was accounted for by lower net outflows of intercompany debt investment and by larger reinvested earnings than in the first quarter (Table 7a) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=15). Foreign private sales of U.S. Treasury securities exceeded purchases (net sales) by $0.3 billion in the second quarter, a shift from net purchases of $50.8 billion in the first quarter. The shift to net sales reflected a shift to net sales of U.S. Treasury bills and certificates and a decrease in net purchases of U.S. Treasury bonds and notes (Table 8a (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=19) and Table 11a (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=25)). Foreign private sales of U.S. securities other than U.S. Treasury securities exceeded purchases (net sales) by $30.0 billion in the second quarter, up from net sales of $11.0 billion in the first. Net purchases of U.S. corporate bonds were $19.8 billion, down from $32.3 billion. Net sales of U.S. stocks were $29.7 billion, up from $23.4 billion. Net sales of U.S. federally sponsored agency bonds were $20.1 billion, up from $19.8 billion (Table 8a) (www.bea.gov/iTable/iTableHtml.cfm?reqid=6&step=3&isuri=1&600=19). Net shipments of U.S. currency to foreign countries were $9.5 billion in the second quarter following net shipments of $5.0 billion in the first. U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns increased $18.7 billion in the second quarter after decreasing $20.9 billion in the first. An example of these liabilities is loans by foreign banks to U.S. nonbanks. U.S. liabilities to foreigners reported by U.S. banks and securities brokers, other than those recorded under foreign official assets, increased $153.2 billion in the second quarter after increasing $86.2 billion in the first. Examples of these liabilities are deposits of foreign residents at U.S. banks and loans by foreign banks to U.S. banks. Financial Derivatives Net inflows of financial derivatives were $3.5 billion in the second quarter after net inflows of $3.9 billion in the first. * * * The statistical discrepancy—the amount that balances the sum of the recorded credits and debits across all the accounts in the international transactions accounts—was $25.8 billion in the second quarter compared with $64.5 billion in the first. In the second quarter, the U.S. dollar appreciated 2.2 percent on a trade-weighted quarterly average basis against a group of 7 major currencies, the same percent increase as in the first quarter. Exchange rate data are based on Federal Reserve Statistical Release H.10. Revisions The first-quarter 2013 international transactions are revised from previously published statistics. The current-account deficit was revised down to $104.9 billion from $106.1 billion. The goods deficit was revised up to $179.5 billion from $179.1 billion; the services surplus was revised up to $56.8 billion from $55.5 billion; the income surplus was revised down to $50.9 billion from $52.0 billion; and net outflows of unilateral current transfers were revised down to $33.1 billion from $34.5 billion. Net financial inflows were revised down to $40.4 billion from $80.7 billion, reflecting a downward revision to inflows of foreign- owned assets in the United States and an upward revision to outflows of U.S.-owned assets abroad. * * * Release dates in 2013: Fourth Quarter and Year 2012...................................March 14, 2013 (Thursday) First Quarter 2013 and Annual Revisions...........................June 14, 2013 (Friday) Second Quarter 2013........................................September 19, 2013 (Thursday) Third Quarter 2013...........................................December 17, 2013 (Tuesday) * * * BEA’s national, international, regional, and industry statistics; the SURVEY OF CURRENT BUSINESS; and BEA news releases are available without charge on BEA’s Web site at www.bea.gov. At the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. ________________ NOTE: This news release is available on BEA’s Web site (www.bea.gov) along with Highlights (www.bea.gov/newsreleases/international/transactions/2013/pdf/trans213_fax.pdf) related to this release, the latest detailed statistics (www.bea.gov/iTable/index_ita.cfm) for U.S. international transactions, and a description of the estimation methods (www.bea.gov/methodologies/index.htm#international_meth) used to compile them. The second- quarter statistics in this release are preliminary and will be revised on December 17, 2013. All links in the text of this release—including archived versions of this release—refer to the latest available statistics. Table 1. U.S. International Transactions [Millions of dollars, quarters seasonally adjusted] 2012 2013 Change: (Credits +, debits -)/1/ 2012 2013:I to I II III IV I r II p 2013:II Current account 1 Exports of goods and services and income receipts............................................. 2,986,949 742,117 746,799 744,602 753,430 749,493 756,453 6,960 2 Exports of goods and services............................................................. 2,210,585 548,046 553,702 552,275 556,561 557,883 563,956 6,073 3 Goods, balance of payments basis...................................................... 1,561,239 387,559 391,867 391,474 390,339 390,705 394,747 4,042 4 Services.............................................................................. 649,346 160,487 161,835 160,802 166,222 167,178 169,210 2,032 5 Transfers under U.S. military agency sales contracts.............................. 18,520 4,578 4,429 4,529 4,984 4,870 5,070 200 6 Travel............................................................................ 126,214 30,243 31,369 32,079 32,523 33,911 34,335 424 7 Passenger fares................................................................... 39,360 9,649 10,069 9,846 9,796 10,223 10,181 -42 8 Other transportation.............................................................. 43,855 11,031 11,108 10,856 10,860 11,504 11,445 -59 9 Royalties and license fees........................................................ 124,182 31,293 30,726 30,827 31,336 31,666 32,051 385 10 Other private services............................................................ 294,527 73,059 73,459 71,969 76,041 74,344 75,404 1,060 11 U.S. government miscellaneous services............................................ 2,688 634 676 695 683 661 724 63 12 Income receipts........................................................................... 776,364 194,071 193,097 192,327 196,869 191,610 192,497 887 13 Income receipts on U.S.-owned assets abroad........................................... 770,079 192,550 191,551 190,748 195,230 189,968 190,844 876 14 Direct investment receipts........................................................ 470,233 119,118 115,731 115,735 119,649 113,783 112,925 -858 15 Other private receipts............................................................ 297,891 72,752 75,384 74,554 75,201 75,704 77,569 1,865 16 U.S. government receipts.......................................................... 1,954 680 436 459 380 481 350 -131 17 Compensation of employees............................................................. 6,286 1,521 1,546 1,579 1,639 1,642 1,653 11 18 Imports of goods and services and income payments............................................. -3,297,677 -830,188 -824,644 -819,001 -823,844 -821,245 -821,155 90 19 Imports of goods and services............................................................. -2,745,240 -690,993 -689,004 -681,304 -683,939 -680,516 -681,743 -1,227 20 Goods, balance of payments basis...................................................... -2,302,714 -581,163 -578,355 -570,454 -572,742 -570,162 -570,399 -237 21 Services.............................................................................. -442,527 -109,830 -110,649 -110,850 -111,197 -110,354 -111,344 -990 22 Direct defense expenditures....................................................... -24,734 -6,479 -6,253 -6,120 -5,882 -5,696 -5,568 128 23 Travel............................................................................ -83,451 -20,960 -21,139 -20,709 -20,643 -21,122 -21,443 -321 24 Passenger fares................................................................... -34,654 -8,466 -8,784 -8,735 -8,669 -9,138 -9,241 -103 25 Other transportation.............................................................. -55,445 -13,614 -13,864 -13,978 -13,989 -14,421 -14,704 -283 26 Royalties and license fees........................................................ -39,889 -9,742 -9,978 -10,314 -9,854 -10,454 -10,651 -197 27 Other private services............................................................ -201,227 -49,769 -49,832 -50,249 -51,378 -48,864 -49,022 -158 28 U.S. government miscellaneous services............................................ -3,127 -800 -799 -745 -782 -659 -715 -56 29 Income payments........................................................................... -552,437 -139,195 -135,639 -137,697 -139,905 -140,730 -139,411 1,319 30 Income payments on foreign-owned assets in the United States.......................... -537,815 -135,665 -131,898 -133,996 -136,256 -137,070 -135,574 1,496 31 Direct investment payments........................................................ -176,747 -46,476 -41,436 -44,874 -43,961 -44,629 -42,940 1,689 32 Other private payments............................................................ -233,336 -56,638 -58,311 -57,394 -60,993 -61,403 -62,373 -970 33 U.S. government payments.......................................................... -127,732 -32,551 -32,151 -31,728 -31,302 -31,038 -30,261 777 34 Compensation of employees............................................................. -14,622 -3,530 -3,742 -3,701 -3,649 -3,660 -3,838 -178 35 Unilateral current transfers, net............................................................. -129,688 -32,771 -32,668 -32,343 -31,906 -33,143 -34,192 -1,049 36 U.S. government grants.................................................................... -46,090 -11,912 -11,473 -11,823 -10,882 -11,061 -11,363 -302 37 U.S. government pensions and other transfers.............................................. -3,685 -1,649 -1,435 -1,270 668 -756 -1,648 -892 38 Private remittances and other transfers................................................... -79,913 -19,210 -19,761 -19,250 -21,692 -21,327 -21,181 146 September 19, 2013 Table 1. U.S. International Transactions (Continued) [Millions of dollars, quarters seasonally adjusted] 2012 2013 Change: (Credits +, debits -)/1/ 2012 2013:I to I II III IV I r II p 2013:II Capital account 39 Capital account transactions, net............................................................. 6,956 -1 -241 -470 7,668 -40 n.a. n.a. Financial account 40 U.S.-owned assets abroad, excluding financial derivatives (increase/financial outflow (-)).............................................................. -97,469 93,519 192,062 -267,054 -115,996 -229,070 -109,648 119,422 41 U.S. official reserve assets.............................................................. -4,460 -1,233 -3,289 -833 895 -876 191 1,067 42 Gold.................................................................................. 0 0 0 0 0 0 0 0 43 Special drawing rights................................................................ -37 -11 -10 -10 -6 -5 -6 -1 44 Reserve position in the International Monetary Fund................................... -4,032 -1,078 -3,179 -744 969 -755 287 1,042 45 Foreign currencies.................................................................... -391 -144 -100 -79 -68 -116 -90 26 46 U.S. government assets, other than official reserve assets................................ 85,331 51,087 16,650 15,206 2,388 -446 3,900 4,346 47 U.S. credits and other long-term assets............................................... -8,202 -2,655 -2,538 -1,038 -1,971 -1,865 -2,907 -1,042 48 Repayments on U.S. credits and other long-term assets................................. 2,546 386 680 847 633 461 494 33 49 U.S. foreign currency holdings and U.S. short-term assets............................. 90,987 53,356 18,508 15,397 3,726 958 6,313 5,355 50 U.S. private assets....................................................................... -178,341 43,665 178,701 -281,428 -119,279 -227,748 -113,739 114,009 51 Direct investment..................................................................... -388,293 -113,038 -86,202 -93,635 -95,418 -84,122 -95,538 -11,416 52 Foreign securities.................................................................... -144,823 2,276 -22,920 -51,183 -72,996 -133,783 -80,139 53,644 53 U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns........... -25,723 -67,175 16,793 6,325 18,334 -22,437 -67,058 -44,621 54 U.S. claims reported by U.S. banks and securities brokers............................. 380,498 221,602 271,030 -142,935 30,801 12,594 128,996 116,402 55 Foreign-owned assets in the United States, excluding financial derivatives (increase/financial inflow (+))............................................................... 543,884 177,381 -176,468 300,570 242,401 265,544 179,260 -86,284 56 Foreign official assets in the United States.............................................. 393,922 144,468 57,374 107,684 84,396 126,871 -9,654 -136,525 57 U.S. government securities............................................................ 314,660 124,225 42,927 87,309 60,199 96,603 -23,535 -120,138 58 U.S. Treasury securities.......................................................... 433,155 143,100 96,213 100,571 93,271 118,533 -11,962 -130,495 59 Other............................................................................. -118,495 -18,875 -53,286 -13,262 -33,072 -21,930 -11,573 10,357 60 Other U.S. government liabilities..................................................... 8,241 2,939 2,773 1,722 807 1,608 3,243 1,635 61 U.S. liabilities reported by U.S. banks and securities brokers.................... -1,572 -14,458 406 7,066 5,414 20,061 -9,301 -29,362 62 Other foreign official assets..................................................... 72,593 31,762 11,268 11,587 17,976 8,599 19,939 11,340 63 Other foreign assets in the United States................................................. 149,962 32,913 -233,842 192,886 158,005 138,673 188,914 50,241 64 Direct investment..................................................................... 166,411 35,756 49,524 38,839 42,292 28,624 37,869 9,245 65 U.S. Treasury securities.............................................................. 156,385 64,974 -4,652 62,548 33,515 50,780 -312 -51,092 66 U.S. securities other than U.S. Treasury securities................................... 196,908 28,297 -39,577 64,694 143,494 -10,970 -30,015 -19,045 67 U.S. currency......................................................................... 57,141 18,057 7,116 16,156 15,812 4,957 9,486 4,529 68 U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns...... -39,505 13,279 -25,581 -4,763 -22,440 -20,872 18,671 39,543 69 U.S. liabilities reported by U.S. banks and securities brokers........................ -387,378 -127,450 -220,672 15,412 -54,668 86,154 153,215 67,061 70 Financial derivatives, net.................................................................... -7,064 -7,339 2,419 -5,129 2,985 3,948 3,511 -437 71 Statistical discrepancy (lines 1, 18, 35, 39, 40, 55, and 70 with sign reversed).............. -5,891 -142,718 92,741 78,825 -34,738 64,513 /2/25,771 /3/-38,742 Memoranda: 72 Balance on goods (lines 3 and 20)............................................................. -741,475 -193,604 -186,487 -178,980 -182,403 -179,457 -175,652 3,805 73 Balance on services (lines 4 and 21).......................................................... 206,819 50,657 51,186 49,952 55,025 56,824 57,865 1,041 74 Balance on goods and services (lines 2 and 19)................................................ -534,656 -142,947 -135,302 -129,029 -127,378 -122,633 -117,787 4,846 75 Balance on income (lines 12 and 29)........................................................... 223,928 54,876 57,457 54,630 56,965 50,881 53,086 2,205 76 Unilateral current transfers, net (line 35)................................................... -129,688 -32,771 -32,668 -32,343 -31,906 -33,143 -34,192 -1,049 77 Balance on current account (lines 1, 18, and 35 or lines 74, 75, and 76)...................... -440,416 -120,842 -110,513 -106,742 -102,320 -104,895 -98,893 6,002 78 Net financial flows (lines 40, 55, and 70).................................................... 439,351 263,561 18,013 28,387 129,390 40,422 73,123 32,701 p Preliminary r Revised n.a. Not available 1 Credits, +: Exports of goods and services and income receipts; unilateral current transfers to the United States; capital account receipts; financial inflows—increase in foreign-owned assets (U.S. liabilities) or decrease in U.S.-owned assets (U.S. claims). Debits, -: Imports of goods and services and income payments; unilateral current transfers to foreigners; capital account payments; financial outflows-decrease in foreign-owned assets (U.S. liabilities) or increase in U.S.-owned assets (U.S. claims). 2 Calculated excluding capital account transactions, net (line 39). 3 The change shown here is calculated as the change from the prior period, not as the sum of changes in the above items. Note: Details may not add to totals because of rounding. Source: U. S. Bureau of Economic Analysis