Current Account At a Glance
- Current Account Deficit: $178.5 billion
- Quarterly Change: Down $10.4 billion
- Goods Deficit: $199.7 billion
- Quarterly Change: Down $4.5 billion
- Services Surplus: $$26.5 billion
- Quarterly Change: $Up 0.7 billion
- Income Surplus: $$20.5 billion
- Quarterly Change: Up $7.8 billion
Technorati Tags: current account, deficit
U.S. International Transactions: Third 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
$178.5 billion (preliminary) in the third quarter of 2007 from $188.9 billion
(revised) in the second quarter. Increases in the surpluses on income and on
services and a decrease in the deficit on goods more than accounted for the
decrease. An increase in net unilateral current transfers to foreigners was
partly offsetting.
Goods and services
The deficit on goods and services decreased to $173.2 billion in the
third quarter from $178.4 billion in the second.
Goods
The deficit on goods decreased to $199.7 billion in the third quarter
from $204.2 billion in the second.
Goods exports increased to $297.9 billion from $279.3 billion. The
largest increases were in capital goods; in foods, feeds, and beverages; in
nonagricultural industrial supplies and materials; and in automotive vehicles,
parts, and engines.
Goods imports increased to $497.6 billion from $483.6 billion. The
largest increases were in automotive vehicles, parts, and engines; in petroleum
and products; and in capital goods.
Services
The surplus on services increased to $26.5 billion in the third quarter
from $25.8 billion in the second.
Services receipts increased to $119.8 billion from $117.2 billion. The
increase was largely accounted for by an increase in travel. Royalties and
license fees, “other” transportation (such as freight and port services), and
passenger fares also increased.
Services payments increased to $93.2 billion from $91.4 billion. The
largest increases were in travel, in “other” private services (such as business,
professional, and technical services, insurance services, and financial
services), in “other” transportation, and in passenger fares.
Income
The surplus on income increased to $20.5 billion in the third quarter
from $12.7 billion in the second.
Investment income
Income receipts on U.S.-owned assets abroad increased to $204.9 billion
from $194.7 billion. The increase was 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
$182.7 billion from $180.4 billion. Increases in “other” private payments
(which consists of interest and dividends) and in U.S. Government payments
(which consists of interest) were partly offset by a decrease in direct
investment payments.
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 $2.4 billion.
Unilateral current transfers
Net unilateral current transfers to foreigners were $25.8 billion in
the third quarter, up from $23.2 billion in the second. The increase mainly
resulted from increases in U.S. Government grants and in private remittances
and other transfers.
Capital Account
Net capital account payments (outflows) were virtually unchanged at
$0.6 billion in the third 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 $93.4 billion in the third quarter, down from $152.8 billion in the second.
Net foreign acquisitions of assets in the United States slowed more than net
U.S. acquisitions of assets abroad.
U.S.-owned assets abroad
U.S.-owned assets abroad increased $155.7 billion in the third quarter,
following an increase of $465.5 billion in the second.
U.S. claims on foreigners reported by U.S. banks increased $111.3
billion in the third quarter, following an increase of $211.0 billion in the
second.
Net U.S. purchases of foreign securities were $78.8 billion in the
third quarter, down from $82.2 billion in the second. Net U.S. purchases of
foreign stocks were $35.7 billion, down from $40.4 billion. Net U.S. purchases
of foreign bonds were $43.2 billion, up from $41.8 billion.
Net financial flows for U.S. direct investment abroad were $56.3
billion in the third quarter, down from $78.0 billion in the second. A
substantial slowdown in net equity capital investment abroad and a slightly
larger decrease in net intercompany debt investment abroad were partly offset
by a pickup in reinvested earnings.
U.S. official reserve assets increased $0.1 billion in the third
quarter, following a decrease of less than $0.1 billion in the second.
Foreign-owned assets in the United States
Foreign-owned assets in the United States increased $249.1 billion in
the third quarter, following an increase of $619.3 billion in the second.
U.S. liabilities to foreigners reported by U.S. banks increased $69.8
billion in the third quarter, following an increase of $144.0 billion in the
second.
Net foreign purchases of U.S. Treasury securities were $46.7 billion in
the third quarter, up from $1.8 billion in the second.
Transactions in U.S. securities other than U.S. Treasury securities
shifted to net foreign sales of $44.2 billion in the third quarter from net
foreign purchases of $243.0 billion in the second. Transactions in U.S. stocks
shifted to net foreign sales of $19.7 billion from net foreign purchases of
$104.1 billion. Transactions in U.S. corporate bonds shifted to net foreign
sales of $8.2 billion from net foreign purchases of $109.7 billion.
Transactions in federally sponsored agency bonds shifted to net foreign sales
of $16.2 billion from net foreign purchases of $29.1 billion.
Net financial flows for foreign direct investment in the United States
were $81.2 billion in the third quarter, up from $46.6 billion in the second.
The increase was accounted for by increases in net equity capital investment in
the United States and in reinvested earnings and by a shift from a decrease to
an increase in net intercompany debt investment in the United States.
Foreign official assets in the United States increased $39.0 billion in
the third quarter, following an increase of $70.5 billion in the second.
Net U.S. currency shipments to foreigners were $4.7 billion in the
third quarter, up from $3.3 billion in the second.
The statistical discrepancy–errors and omissions in recorded
transactions–was a positive $85.6 billion in the third quarter, compared with
a positive $36.7 billion in the second.
In the third quarter, the U.S. dollar depreciated 3 percent on a trade-
weighted quarterly average basis against a group of 7 major currencies.
Current Account - 3rd Quarter 2007 [PDF]
Current Account - 3rd Quarter 2007 [Text]
Current Account - 3rd Quarter 2007 [Excel]
Source: Department of Commerce, Bureau of Economic Analysis
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