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                          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)

                            *          *          *

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