News Release
U.S. International Transactions: Second Quarter 2007
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Douglas B. Weinberg: (202) 606-9590 BEA 07-41
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.
* * *
Release dates in 2007:
Fourth quarter and year 2006.............March 14, 2007 (Wednesday)
First quarter 2007...........................June 15, 2007 (Friday)
Second quarter 2007.....................September 14, 2007 (Friday)
Third quarter 2007.......................December 17, 2007 (Monday)
* * *
Summary BEA estimates 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 estimates; 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.
September 14, 2007
Table 1. U.S. International Transactions
[Millions of dollars, quarters seasonally adjusted]
2006 2007 Change:
(Credits +, debits -) 2006 2007
I II III IV I r II p I-II
Current account
1 Exports of goods and services and income receipts...................................... 2,096,165 494,027 518,595 532,894 550,649 558,369 586,698 28,329
2 Exports of goods and services....................................................... 1,445,703 345,636 356,575 365,868 377,623 382,156 395,689 13,533
3 Goods, balance of payments basis................................................ 1,023,109 243,880 252,458 260,285 266,486 270,116 279,339 9,223
4 Services........................................................................ 422,594 101,756 104,117 105,583 111,137 112,040 116,350 4,310
5 Transfers under U.S. military agency sales contracts........................ 17,112 4,531 4,188 4,102 4,291 4,259 4,070 -189
6 Travel...................................................................... 85,694 20,845 21,212 21,527 22,110 22,297 23,618 1,321
7 Passenger fares............................................................. 22,187 5,397 5,328 5,696 5,765 5,706 6,117 411
8 Other transportation........................................................ 46,297 11,038 11,754 11,716 11,789 12,157 12,791 634
9 Royalties and license fees.................................................. 62,378 14,923 15,196 15,815 16,444 16,645 16,959 314
10 Other private services...................................................... 187,771 44,745 46,153 46,433 50,441 50,680 52,507 1,827
11 U.S. Government miscellaneous services...................................... 1,155 277 286 294 297 296 289 -7
12 Income receipts..................................................................... 650,462 148,391 162,020 167,026 173,025 176,213 191,009 14,796
13 Income receipts on U.S.-owned assets abroad..................................... 647,582 147,670 161,293 166,314 172,305 175,484 190,276 14,792
14 Direct investment receipts.................................................. 310,224 73,304 77,702 78,372 80,846 79,478 85,819 6,341
15 Other private receipts...................................................... 334,958 73,776 83,004 87,348 90,830 95,467 103,849 8,382
16 U.S. Government receipts.................................................... 2,400 590 587 594 629 539 608 69
17 Compensation of employees....................................................... 2,880 721 727 712 720 729 733 4
18 Imports of goods and services and income payments...................................... -2,818,047 -673,277 -700,504 -726,352 -717,914 -728,472 -755,031 -26,559
19 Imports of goods and services....................................................... -2,204,225 -535,348 -549,153 -565,175 -554,549 -559,737 -573,377 -13,640
20 Goods, balance of payments basis................................................ -1,861,380 -451,637 -463,734 -479,184 -466,825 -470,983 -483,552 -12,569
21 Services........................................................................ -342,845 -83,711 -85,419 -85,991 -87,724 -88,754 -89,825 -1,071
22 Direct defense expenditures................................................. -31,054 -7,726 -7,737 -7,990 -7,601 -7,924 -8,001 -77
23 Travel...................................................................... -72,029 -17,582 -18,077 -18,015 -18,355 -18,582 -18,661 -79
24 Passenger fares............................................................. -27,503 -6,748 -6,927 -6,889 -6,939 -6,799 -6,749 50
25 Other transportation........................................................ -65,282 -16,025 -16,401 -16,491 -16,365 -16,490 -16,572 -82
26 Royalties and license fees.................................................. -26,432 -6,767 -6,532 -6,497 -6,636 -6,810 -6,939 -129
27 Other private services...................................................... -116,524 -27,867 -28,728 -29,087 -30,841 -31,133 -31,879 -746
28 U.S. Government miscellaneous services...................................... -4,021 -996 -1,016 -1,022 -987 -1,016 -1,024 -8
29 Income payments..................................................................... -613,823 -137,929 -151,352 -161,177 -163,365 -168,735 -181,654 -12,919
30 Income payments on foreign-owned assets in the United States.................... -604,410 -135,607 -149,004 -158,823 -160,977 -166,422 -179,238 -12,816
31 Direct investment payments.................................................. -136,010 -31,299 -33,055 -37,885 -33,772 -31,718 -36,181 -4,463
32 Other private payments...................................................... -334,645 -73,830 -83,037 -86,607 -91,171 -97,066 -103,628 -6,562
33 U.S. Government payments.................................................... -133,755 -30,478 -32,912 -34,331 -36,034 -37,638 -39,429 -1,791
34 Compensation of employees....................................................... -9,412 -2,322 -2,348 -2,354 -2,388 -2,313 -2,416 -103
35 Unilateral current transfers, net...................................................... -89,595 -21,360 -23,686 -23,877 -20,673 -26,994 -22,457 4,537
36 U.S. Government grants.............................................................. -27,142 -5,671 -7,226 -7,741 -6,504 -10,372 -5,455 4,917
37 U.S. Government pensions and other transfers........................................ -6,508 -1,614 -1,627 -1,620 -1,647 -1,700 -1,732 -32
38 Private remittances and other transfers............................................. -55,945 -14,075 -14,833 -14,516 -12,522 -14,922 -15,270 -348
September 14, 2007
Table 1. U.S. International Transactions (Continued)
[Millions of dollars, quarters seasonally adjusted]
2006 2007 Change:
(Credits +, debits -) 2006 2007
I II III IV I r II p I-II
Capital account
39 Capital account transactions, net...................................................... -3,913 -1,724 -1,008 -545 -637 -559 -589 -30
Financial account
40 U.S.-owned assets abroad, excluding financial derivatives (increase/financial
outflow (-))........................................................................ -1,055,176 -344,032 -212,218 -209,898 -289,028 -449,454 -469,470 -20,016
41 U.S. official reserve assets........................................................ 2,374 513 -560 1,006 1,415 -72 26 98
42 Gold............................................................................ 0 0 0 0 0 0 0 0
43 Special drawing rights.......................................................... -223 -67 -51 -54 -51 -43 -39 4
44 Reserve position in the International Monetary Fund............................. 3,331 729 -351 1,275 1,678 212 294 82
45 Foreign currencies.............................................................. -734 -149 -158 -215 -212 -241 -229 12
46 U.S. Government assets, other than official reserve assets.......................... 5,346 1,049 1,765 1,570 962 445 -493 -938
47 U.S. credits and other long-term assets......................................... -2,992 -1,517 -376 -592 -507 -608 -1,365 -757
48 Repayments on U.S. credits and other long-term assets........................... 8,329 2,558 2,147 2,170 1,454 1,091 884 -207
49 U.S. foreign currency holdings and U.S. short-term assets....................... 9 8 -6 -8 15 -38 -12 26
50 U.S. private assets................................................................. -1,062,896 -345,594 -213,423 -212,474 -291,405 -449,827 -469,003 -19,176
51 Direct investment............................................................... -235,358 -66,502 -53,744 -49,018 -66,094 -81,407 -71,523 9,884
52 Foreign securities.............................................................. -289,422 -57,693 -59,003 -55,496 -117,230 -87,206 -88,051 -845
53 U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns..... -83,531 -24,302 -45,885 -29,162 15,818 -47,830 -105,557 -57,727
54 U.S. claims reported by U.S. banks, not included elsewhere...................... -454,585 -197,097 -54,791 -78,798 -123,899 -233,384 -203,872 29,512
55 Foreign-owned assets in the United States, excluding financial derivatives
(increase/financial inflow (+))..................................................... 1,859,597 538,140 355,442 449,987 516,029 616,602 620,405 3,803
56 Foreign official assets in the United States........................................ 440,264 125,257 120,861 108,799 85,347 152,193 70,098 -82,095
57 U.S. Government securities...................................................... 380,734 112,338 65,626 107,972 94,798 110,772 43,275 -67,497
58 U.S. Treasury securities.................................................... 189,181 65,124 24,262 52,746 47,049 37,705 -13,125 -50,830
59 Other....................................................................... 191,553 47,214 41,364 55,226 47,749 73,067 56,400 -16,667
60 Other U.S. Government liabilities............................................... 3,133 26 824 1,154 1,129 654 -198 -852
61 U.S. liabilities reported by U.S. banks, not included elsewhere................. 22,040 2,394 42,533 -7,221 -15,666 29,797 15,736 -14,061
62 Other foreign official assets................................................... 34,357 10,499 11,878 6,894 5,086 10,970 11,285 315
63 Other foreign assets in the United States........................................... 1,419,333 412,883 234,581 341,188 430,682 464,409 550,307 85,898
64 Direct investment............................................................... 180,580 42,976 49,056 42,979 45,570 11,906 73,620 61,714
65 U.S. Treasury securities........................................................ -35,931 -25,274 -19,307 -13,440 22,090 44,638 -7,625 -52,263
66 U.S. securities other than U.S. Treasury securities............................. 591,951 173,213 145,750 140,243 132,745 112,269 235,096 122,827
67 U.S. currency................................................................... 12,571 1,933 1,127 1,129 8,382 -1,631 3,347 4,978
68 U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns 235,769 60,613 55,907 69,637 49,612 93,624 108,115 14,491
69 U.S. liabilities reported by U.S. banks, not included elsewhere................. 434,393 159,422 2,048 100,640 172,283 203,603 137,754 -65,849
70 Financial derivatives, net............................................................. 28,762 1,633 14,001 14,911 -1,783 14,800 n.a. -14,800
71 Statistical discrepancy (sum of above items with sign reversed)........................ -17,794 6,593 49,378 -37,121 -36,643 15,708 40,444 24,736
Memoranda:
72 Balance on goods (lines 3 and 20)...................................................... -838,271 -207,757 -211,276 -218,899 -200,339 -200,867 -204,213 -3,346
73 Balance on services (lines 4 and 21)................................................... 79,749 18,045 18,699 19,592 23,414 23,286 26,525 3,239
74 Balance on goods and services (lines 2 and 19)......................................... -758,522 -189,712 -192,577 -199,307 -176,926 -177,581 -177,688 -107
75 Balance on income (lines 12 and 29).................................................... 36,640 10,462 10,668 5,850 9,661 7,478 9,355 1,877
76 Unilateral current transfers, net (line 35)............................................ -89,595 -21,360 -23,686 -23,877 -20,673 -26,994 -22,457 4,537
77 Balance on current account (lines 1, 18, and 35 or lines 74, 75, and 76)............... -811,477 -200,611 -205,595 -217,334 -187,938 -197,097 -190,790 6,307
p Preliminary
r Revised
n.a. Not available
NOTE: Details may not add to totals because of rounding. Source: U. S. Bureau of Economic Analysis