Current Account At a Glance
- Current Account Deficit: $190.8 billion
- Quarterly Change: Down $6.3 billion
- Goods Deficit: $204.2 billion
- Quarterly Change: $Up 3.3 billion
- Services Surplus: $26.5 billion
- Quarterly Change: $Up 3.2 billion
- Income Surplus: $9.4 billion
- Quarterly Change: Up $1.9 billion
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U.S. International Transactions: Second Quarter 2007
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 $190.8
billion (preliminary) in the second quarter of 2007 from $197.1 billion (revised)
in the first quarter. A decrease in net unilateral current transfers to
foreigners and increases in the surpluses on services and on income more than
accounted for the decrease. An increase in the deficit on goods was partly
offsetting.
Goods and services
The deficit on goods and services increased slightly to $177.7 billion
in the second quarter from $177.6 billion in the first.
Goods
The deficit on goods increased to $204.2 billion in the second quarter
from $200.9 billion in the first.
Goods exports increased to $279.3 billion from $270.1 billion. The
largest increases were in nonagricultural industrial supplies and materials, in
agricultural products, and in automotive vehicles, parts, and engines.
Goods imports increased to $483.6 billion from $471.0 billion. The
increase resulted from increases in petroleum and products and in nonpetroleum
industrial supplies and materials.
Services
The surplus on services increased to $26.5 billion in the second
quarter from $23.3 billion in the first.
Services receipts increased to $116.4 billion from $112.0 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 travel. “Other” transportation (such as freight
and port services), passenger fares, and royalties and license fees also
increased.
Services payments increased to $89.8 billion from $88.8 billion. The
increase was mostly accounted for by increases in “other” private services and
in royalties and license fees.
Income
The surplus on income increased to $9.4 billion in the second quarter
from $7.5 billion in the first.
Investment income
Income receipts on U.S.-owned assets abroad increased to $190.3 billion
from $175.5 billion. The increase was almost completely accounted for by
increases 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 increased
to $179.2 billion from $166.4 billion. The increase was accounted for by
increases in “other” private payments (which consists of interest and dividends),
in direct investment payments, and in U.S. Government payments (which consists
of interest).
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 increased slightly to $2.4 billion from $2.3 billion.
Unilateral current transfers
Net unilateral current transfers to foreigners were $22.5 billion in the
second quarter, down from $27.0 billion in the first. The decrease was more
than accounted for by a decrease in U.S. Government grants.
Capital Account
Net capital account payments (outflows) were virtually unchanged at
$0.6 billion in the second 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 $150.9 billion in the second quarter, down from $181.9 billion in
the first. Net U.S. acquisitions of assets abroad picked up more than net
foreign acquisitions of assets in the United States.
U.S.-owned assets abroad
U.S.-owned assets abroad increased $469.5 billion in the second quarter,
following an increase of $449.5 billion in the first.
U.S. claims on foreigners reported by U.S. banks increased $203.9
billion in the second quarter, following an increase of $233.4 billion in the
first.
Net U.S. purchases of foreign securities were $88.1 billion in the second
quarter, up slightly from $87.2 billion in the first. Net U.S. purchases of
foreign stocks were $40.3 billion, down from $43.5 billion. Net U.S. purchases
of foreign bonds were $47.8 billion, up from $43.7 billion.
Net financial flows for U.S. direct investment abroad were $71.5 billion
in the second quarter, down from $81.4 billion in the first. A shift from an
increase to a decrease in net intercompany debt investment abroad and a slowdown
in net equity capital investment abroad were partly offset by a pickup in
reinvested earnings.
U.S. official reserve assets decreased less than $0.1 billion in the
second quarter, following an increase of $0.1 billion in the first.
Foreign-owned assets in the United States
Foreign-owned assets in the United States increased $620.4 billion in
the second quarter, following an increase of $616.6 billion in the first.
U.S. liabilities to foreigners reported by U.S. banks increased $137.8
billion in the second quarter, following an increase of $203.6 billion in the first.
Transactions in U.S. Treasury securities shifted to net foreign sales
of $7.6 billion in the second quarter from net foreign purchases of $44.6
billion in the first.
Net foreign purchases of U.S. securities other than U.S. Treasury
securities were $235.1 billion in the second quarter, up from $112.3 billion in
the first. Net foreign purchases of U.S. stocks were $104.2 billion, up from
$43.5 billion. Net foreign purchases of U.S. corporate bonds were $101.3
billion, down from $104.9 billion. Transactions in federally sponsored agency
bonds shifted to net foreign purchases of $29.6 billion from net foreign sales
of $36.1 billion.
Net financial flows for foreign direct investment in the United States were
$73.6 billion in the second quarter, up from $11.9 billion in the first. The
increase was mostly accounted for by a shift from a decrease to an increase in
net intercompany debt investment in the United States and a pickup in net
equity capital investment in the United States. Reinvested earnings also increased.
Foreign official assets in the United States increased $70.1 billion in
the second quarter, following an increase of $152.2 billion in the first.
Transactions in U.S. currency shifted to net shipments to foreign
countries of $3.3 billion in the second quarter from net shipments to the United
States of $1.6 billion in the first.
The statistical discrepancy–errors and omissions in recorded
transactions–was a positive $40.4 billion in the second quarter, compared with
a positive $15.7 billion in the first.
In the second quarter, the U.S. dollar depreciated 3 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 $197.1 billion
from $192.6 billion. The goods deficit was unrevised at $200.9 billion; the
services surplus was revised to $23.3 billion from $24.1 billion; the income
surplus was revised to $7.5 billion from $10.4 billion; and unilateral current
transfers were revised to net outflows of $27.0 billion from $26.1 billion.
Net recorded financial inflows were revised to $181.9 billion from $202.8 billion.
Current Account 2nd Quarter 2007 [PDF]
Current Account Tables 2nd Quarter 2007 [Excel]
Source: Commerce Department, Bureau of Economic Analysis
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