EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, THURSDAY, March 19, 2015 William Zeile: (202) 606-9893 BEA 15-11 U.S. International Transactions: Fourth Quarter and Year 2014 Fourth Quarter Current Account The U.S. current-account deficit—a net measure of transactions between the United States and the rest of the world in goods, services, primary income (investment income and compensation), and secondary income (current transfers)—increased to $113.5 billion (preliminary) in the fourth quarter of 2014 from $98.9 billion (revised) in the third quarter. The deficit increased to 2.6 percent of current-dollar gross domestic product (GDP) from 2.2 percent in the third quarter. The increase in the current-account deficit was primarily accounted for by a decrease in the surplus on primary income. In addition, the deficits on goods and secondary income increased. These changes were partly offset by an increase in the surplus on services. _______________________________________________________________________________________________ Notice About the 2015 Annual Revision of the U.S. International Transactions Accounts The annual revision of the U.S. international transactions accounts will be released along with preliminary estimates for the first quarter of 2015 on June 18, 2015. An article previewing the annual revisions will appear in the April 2015 issue of the Survey of Current Business (www.bea.gov/scb/index.htm). _______________________________________________________________________________________________ Goods and services The deficit on goods and services increased to $127.0 billion in the fourth quarter from $123.9 billion in the third quarter. Goods The deficit on goods increased to $185.2 billion in the fourth quarter from $181.1 billion in the third quarter. Goods exports decreased to $410.1 billion from $415.0 billion. Exports decreased in three of the six major general-merchandise end-use categories. The largest decrease was in industrial supplies and materials; exports also decreased in automotive vehicles, parts, and engines and in consumer goods except food and automotive. The decrease in industrial supplies and materials—which more than accounted for the total decrease in general merchandise exports— mostly reflected a decrease in exports of petroleum and products. The decrease in automotive vehicles, parts, and engines was more than accounted for by a decrease in exports of passenger cars. Exports increased in nonmonetary gold and in three major general-merchandise end-use categories. The largest general-merchandise increase was in foods, feeds, and beverages; the increase was more than accounted for by an increase in exports of soybeans, which was partly offset by a decrease in exports of grains and preparations (ITA Table 2.1) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=45). Goods imports decreased to $595.3 billion from $596.1 billion. Imports decreased in three of the six major general-merchandise end-use categories and in nonmonetary gold. The largest decrease—which more than accounted for the total decrease in goods imports—was in industrial supplies and materials; as with exports, the decrease mostly reflected a decrease in petroleum and products. The largest increase was in consumer goods except food and automotive, mostly reflecting an increase in other household goods, including cell phones (ITA Table 2.1) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=45). Services The surplus on services increased to $58.2 billion in the fourth quarter from $57.2 billion in the third quarter. Services exports increased to $180.4 billion from $176.6 billion. Exports increased in all nine major services categories. The largest increases were in financial services and in travel (for all purposes including education). The increase in financial services was largely due to increases in financial management, financial advisory, and custody services and in securities brokerage, underwriting, and related services. The increase in travel (for all purposes including education) reflected an increase in personal travel that was partly offset by a decrease in business travel (ITA Table 3.1) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=51). Services imports increased to $122.3 billion from $119.5 billion. Imports increased in seven of the nine major services categories. The largest increase was in travel (for all purposes including education), mainly reflecting an increase in business travel; personal travel also increased (ITA Table 3.1) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=51). Primary income The surplus on primary income decreased to $50.6 billion in the fourth quarter from $59.8 billion in the third quarter. Investment income Income receipts from foreigners on U.S. holdings of financial assets abroad decreased to $201.3 billion from $210.0 billion (ITA Table 4.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=56#reqid=62&step=6&isuri=1&6210=1&6200=56). The decrease was more than accounted for by a decrease in direct investment income on equity from foreign affiliates in all major industries (ITA Table 4.2) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=57). Income payments to foreigners on U.S. liabilities increased to $148.4 billion from $147.8 billion (ITA Table 4.1) (www.bea.gov/iTable/iTable.cfm?reqid=62&step=6&isuri=1&6210=1&6200=56#reqid=62&step=6&isuri=1&6210=1&6200=56). The increase was more than accounted for by an increase in portfolio investment income payments, mainly due to increased interest on long-term debt securities (ITA Table 4.3) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=58). The increase in portfolio investment income payments was partly offset by a decrease in direct investment income payments, mostly reflecting a decrease in income on equity (ITA Table 4.2) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=57). Compensation of employees Receipts for compensation of U.S. residents paid by nonresidents was nearly unchanged at $1.7 billion in the fourth quarter. Payments for compensation of foreign residents paid by U.S. residents increased to $4.1 billion from $4.0 billion. Secondary income (current transfers) The deficit on secondary income increased to $37.0 billion in the fourth quarter from $34.8 billion in the third quarter. Secondary income receipts and payments include U.S. government and private transfers, such as U.S. government grants and pensions, fines and penalties, withholding taxes, personal transfers (remittances), insurance-related transfers, and other current transfers. Secondary income receipts decreased to $27.3 billion from $28.0 billion; the decrease was more than accounted for by a decrease in private transfers, primarily insurance-related transfers (ITA Table 5.1) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=62). Secondary income payments increased to $64.4 billion from $62.8 billion, mostly reflecting an increase in private transfers, primarily fines and penalties and withholding taxes (ITA Table 5.1) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=62). Capital Account Capital-account receipts for the fourth quarter were zero and capital-account payments are not available because source data are not yet available. Source data on fourth-quarter capital-account payments will be incorporated with the release of the 2015 first-quarter U.S. International Transactions on June 18, 2015. In the third quarter, capital-account receipts and payments were zero. Financial Account Net U.S. borrowing measured by financial-account transactions was $10.8 billion in the fourth quarter, down from $22.0 billion in the third quarter. Both net U.S. acquisition of financial assets excluding financial derivatives and net U.S. incurrence of liabilities excluding financial derivatives decreased in the fourth quarter, but the incurrence of liabilities decreased more. Net transactions in financial derivatives other than reserves reflected more net borrowing than in the third quarter. Net U.S. acquisition of financial assets excluding financial derivatives Net U.S. acquisition of financial assets excluding financial derivatives was $77.2 billion in the fourth quarter, down from $353.0 billion in the third quarter. Direct investment assets (equity and debt instruments) Net acquisition of direct investment assets was $128.3 billion in the fourth quarter, up from $96.8 billion in the third quarter. The increase was largely due to an increase in net acquisition of equity other than reinvestment of earnings. Also contributing to the increase was a shift to net acquisition of debt instrument assets by U.S. affiliates (ITA Table 6.1) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=65). Portfolio investment assets (equity and investment fund shares and debt securities) Net U.S. acquisition of portfolio investment assets abroad was $89.8 billion in the fourth quarter, down from $161.5 billion in the third quarter. Transactions in foreign debt securities shifted to net U.S. sales of $46.6 billion from net U.S. purchases of $33.5 billion, a shift largely accounted for by a shift to net sales of corporate bonds and notes. In contrast, net U.S. purchases of foreign equity and investment fund shares increased to $136.4 billion from $128.0 billion (ITA Table 7.1) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=68). Other investment assets (currency and deposits, loans, insurance technical reserves, and trade credit and advances) Net U.S. sales of other investment assets abroad (sales in excess of acquisitions) were $138.4 billion in the fourth quarter, a shift from net acquisition of $95.7 billion in the third quarter. The shift to net sales reflected shifts to net U.S. withdrawals of deposits abroad and net foreign repayment of U.S. loans to foreign residents (ITA Table 8.1) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=71). Reserve assets Transactions in U.S. reserve assets decreased holdings by $2.5 billion in the fourth quarter, after decreasing holdings by $0.9 billion in the third quarter. The decreases in both quarters reflected decreases in the U.S. reserve position in the International Monetary Fund. Net U.S. incurrence of liabilities excluding financial derivatives Net U.S. incurrence of liabilities to foreigners excluding financial derivatives was $56.2 billion in the fourth quarter, down from $350.7 billion in the third quarter. Direct investment liabilities (equity and debt instruments) Net incurrence of direct investment liabilities to foreigners was $49.7 billion in the fourth quarter, down from $86.4 billion in the third quarter. The decrease was largely accounted for by a shift to net repayment from net incurrence of debt instrument liabilities, reflecting a shift to net repayment by U.S. parent companies and a reduction in net incurrence by U.S. affiliates. Lower fourth-quarter net incurrence of liabilities in equity other than reinvestment of earnings also contributed to the decrease in the net incurrence of direct investment liabilities (ITA Table 6.1) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=65). Portfolio investment liabilities (equity and investment fund shares and debt securities) Net U.S. incurrence of portfolio investment liabilities to foreigners was $145.8 billion in the fourth quarter, down from $241.1 billion in the third quarter. Net foreign sales of U.S. equity and investment fund shares were $12.6 billion, a shift from net foreign purchases of $85.4 billion. Net foreign purchases of U.S. debt securities were $158.4 billion, up from $155.7 billion (ITA Table 7.1) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=68). Other investment liabilities (currency and deposits, loans, insurance technical reserves, trade credit and advances, and special drawing rights allocations) Net U.S. repayment (repayments in excess of incurrences) of other investment liabilities to foreigners was $139.3 billion in the fourth quarter, a shift from net incurrence of $23.2 billion in the third quarter. The shift reflected a shift to net withdrawals of foreign-resident deposits (ITA Table 8.1) (www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6210=1&6200=71). Financial derivatives other than reserves Net transactions in financial derivatives other than reserves were –$31.7 billion in the fourth quarter, representing net borrowing. This was an increase from net borrowing of $24.3 billion in the third quarter. The fourth-quarter increase reflected the appreciation of the dollar as over-the-counter and exchange-traded contracts written to hedge currency exposures resulted in higher net cash receipts to U.S. residents (net borrowing). Transactions in financial derivatives are only available as a net value equal to transactions for assets less transactions for liabilities. A positive value represents net cash payments by U.S. residents to foreign residents from settlements of derivatives contracts (net lending) and a negative value represents net U.S. cash receipts (net borrowing). Statistical discrepancy The statistical discrepancy is the difference between net acquisition of assets and net incurrence of liabilities in the financial account (including financial derivatives) less the difference between total credits and total debits recorded in the current and capital accounts. The statistical discrepancy was $102.7 billion in the fourth quarter compared with $76.9 billion in the third quarter. * * * In the fourth quarter, the U.S. dollar appreciated 6.2 percent on a trade-weighted quarterly average basis against a group of 7 major currencies, after appreciating 1.9 percent on the same basis in the third quarter. Exchange rate data are based on Federal Reserve Statistical Release H.10. * * * The Year 2014 Current Account The U.S. current-account deficit increased to $410.6 billion (preliminary) in 2014 from $400.3 billion in 2013. The deficit was 2.4 percent of current-dollar GDP in both 2014 and 2013. Goods and services The deficit on goods and services increased to $504.7 billion in 2014 from $476.4 billion in 2013. Goods The deficit on goods increased to $735.8 billion in 2014 from $701.7 billion in 2013. Goods exports increased to $1,635.1 billion from $1,592.8 billion. Exports increased in all six major general-merchandise end-use categories but decreased in nonmonetary gold. The largest increases were in capital goods except automotive, in consumer goods except food and automotive, and in industrial supplies and materials. The increase in capital goods except automotive reflected increases in machinery and equipment except consumer-type and in civilian aircraft, engines, and parts. The increase in consumer goods except food and automotive was largely accounted for by an increase in durable goods. The increase in industrial supplies and materials was mostly accounted for by an increase in exports of petroleum and products (ITA Table 2.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=45&6224=&6223=&6222=0&6230=1). Goods imports increased to $2,370.9 billion from $2,294.5 billion. Imports increased in five of the six major general-merchandise end-use categories. The largest increases were in capital goods except automotive and in consumer goods except food and automotive. The increase in capital goods except automotive was mostly accounted for by increases in machinery and equipment except consumer-type. The increase in consumer goods except food and automotive partly reflected increases in imports of medicinal, dental, and pharmaceutical products and in other household goods, including cell phones. Imports decreased in industrial supplies and materials, a decrease that was more than accounted for by a decrease in imports of petroleum and products (ITA Table 2.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=45&6224=&6223=&6222=0&6230=1). Services The surplus on services increased to $231.1 billion in 2014 from $225.3 billion in 2013. Services exports increased to $709.4 billion from $687.4 billion. Exports increased in seven of the nine major services categories. The largest increases were in other business services—particularly professional and management consulting services and research and development services—and in financial services (ITA Table 3.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=51&6224=&6223=&6222=0&6230=1). Services imports increased to $478.3 billion from $462.1 billion. Imports increased in six of the nine major categories. The largest increase was in travel (for all purposes including education), specifically in personal travel. Increases in other business services and in transport also contributed to the increase in services imports (ITA Table 3.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=51&6224=&6223=&6222=0&6230=1). Primary income The surplus on primary income increased to $217.9 billion in 2014 from $199.7 billion in 2013. Investment income Income receipts from foreigners on U.S. holdings of financial assets abroad increased to $812.8 billion from $773.4 billion (ITA Table 4.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=56&6224=&6223=&6222=0&6230=1). The increase was largely accounted for by an increase in portfolio investment income, particularly income receipts on equity and investment fund shares by financial institutions other than deposit-taking institutions (ITA Table 4.3) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=58&6224=&6223=&6222=0&6230=1). Direct investment income receipts also increased, reflecting an increase in reinvested earnings (ITA Table 4.2) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=57&6224=&6223=&6222=0&6230=1). Income payments to foreigners on U.S. liabilities increased to $585.9 billion from $564.9 billion (ITA Table 4.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=56&6224=&6223=&6222=0&6230=1). The increase mostly reflected an increase in portfolio investment income payments, primarily on equity and investment fund shares of nonfinancial institutions (ITA Table 4.3) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=58&6224=&6223=&6222=0&6230=1). Direct investment income payments also increased. Other investment income payments decreased. Compensation of employees Receipts for compensation of U.S. residents paid by nonresidents increased to $6.9 billion from $6.7 billion. Payments for compensation of foreign residents paid by U.S. residents increased to $15.9 billion from $15.6 billion. Secondary income (current transfers) The deficit on secondary income increased to $123.8 billion in 2014 from $123.5 billion in 2013. Secondary income receipts increased to $127.1 billion from $118.4 billion; the increase was more than accounted for by an increase in U.S. government transfers, primarily fines and penalties (ITA Table 5.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=62&6224=&6223=&6222=0&6230=1). Secondary income payments increased to $250.9 billion from $241.9 billion; the increase was more than accounted for by an increase in private transfers, primarily insurance-related transfers and withholding taxes (ITA Table 5.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=62&6224=&6223=&6222=0&6230=1). Capital Account The capital-account deficit was $0.04 billion in 2014, down from $0.4 billion in 2013. Financial Account Net U.S. borrowing measured by financial-account transactions was $141.6 billion in 2014, down from $370.7 billion in 2013. Net U.S. acquisition of financial assets excluding financial derivatives increased in 2014, and net U.S. incurrence of liabilities excluding financial derivatives decreased. A shift to a negative value in net transactions in financial derivatives other than reserves partly offset the other two changes. Net U.S. acquisition of financial assets excluding financial derivatives Net U.S. acquisition of financial assets excluding financial derivatives was $820.5 billion in 2014, up from $644.8 billion in 2013. Direct investment assets (equity and debt instruments) Net acquisition of direct investment assets was $353.2 billion in 2014, down from $408.2 billion in 2013. The decrease was more than accounted for by a shift to net sales of debt instrument assets (ITA Table 6.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=65&6224=&6223=&6222=0&6230=1). Portfolio investment assets (equity and investment fund shares and debt securities) Net U.S. acquisition of portfolio investment assets abroad was $547.4 billion in 2014, up from $489.9 billion in 2013. Net U.S. purchases of foreign equity and investment fund shares increased to $437.1 billion from $275.2 billion. In contrast, net U.S. purchases of foreign debt securities decreased to $110.3 billion from $214.6 billion, reflecting lower net purchases of commercial paper and corporate bonds and notes (ITA Table 7.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=68&6224=&6223=&6222=0&6230=1). Other investment assets (currency and deposits, loans, insurance technical reserves, and trade credit and advances) Net U.S. sales of other investment assets abroad were $76.5 billion in 2014, down from net sales of $250.3 billion in 2013. The decrease was more than accounted for by a shift to net acquisition of loans (ITA Table 8.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=71&6224=&6223=&6222=0&6230=1). Reserve assets Transactions in U.S. reserve assets decreased holdings by $3.6 billion in 2014, after decreasing holdings by $3.1 billion in 2013. The decreases in both years were more than accounted for by decreases in the U.S. reserve position in the International Monetary Fund. Net U.S. incurrence of liabilities excluding financial derivatives Net U.S. incurrence of liabilities to foreigners excluding financial derivatives was $908.6 billion in 2014, down from $1,017.7 billion in 2013. Direct investment liabilities (equity and debt instruments) Net incurrence of direct investment liabilities to foreigners was $93.1 billion in 2014, down from $295.0 billion in 2013. The decrease was largely accounted for by a reduction in net incurrence of liabilities in equity other than reinvestment of earnings. A reduction in net incurrence of debt instrument liabilities also contributed to the decrease (ITA Table 6.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=65&6224=&6223=&6222=0&6230=1). Portfolio investment liabilities (equity and investment fund shares and debt securities) Net U.S. incurrence of portfolio investment liabilities to foreigners was $692.5 billion in 2014, up from $490.9 billion in 2013. Net foreign purchases of U.S. equity and investment fund shares were $169.9 billion, a shift from net foreign sales of $85.4 billion in 2013. Net foreign purchases of U.S. debt securities were $522.7 billion, down from $576.4 billion (ITA Table 7.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=68&6224=&6223=&6222=0&6230=1). Other investment liabilities (currency and deposits, loans, insurance technical reserves, trade credit and advances, and special drawing rights allocations) Net U.S. incurrence of other investment liabilities to foreigners was $123.0 billion in 2014, down from $231.8 billion in 2013. The decrease reflected a shift to net withdrawals of foreign-resident deposits (ITA Table 8.1) (http://www.bea.gov/iTable/iTableHtml.cfm?reqid=62&step=6&isuri=1&6221=0&6220=1,2&6210=1&6200=71&6224=&6223=&6222=0&6230=1). Financial derivatives other than reserves Net transactions in financial derivatives other than reserves were –$53.5 billion in 2014, representing net borrowing. This was a shift from net lending of $2.2 billion in 2013. Transactions in financial derivatives are only available as a net value equal to transactions for assets less transactions for liabilities. A positive value represents net cash payments by U.S. residents to foreign residents from settlements of derivatives contracts (net lending) and a negative value represents net U.S. cash receipts (net borrowing). Statistical discrepancy The statistical discrepancy was $269.0 billion in 2014 compared with $30.0 billion in 2013. * * * In 2014, the U.S. dollar appreciated 3.3 percent on a trade-weighted yearly average basis against a group of 7 major currencies. In 2013, the U.S. dollar appreciated 3.3 percent on the same basis. From yearend 2013 to yearend 2014, the dollar appreciated 11.7 percent against the major currencies. Exchange rate data are based on Federal Reserve Statistical Release H.10. Revisions Statistics for the first three quarters of 2014 were revised to reflect revised seasonal adjustments and, for the third quarter, newly available and revised source data. For the third quarter, the current-account deficit is revised downward to $98.9 billion from $100.3 billion. The goods deficit is revised downward to $181.1 billion from $182.1 billion. The services surplus is revised downward to $57.2 billion from $57.7 billion. The primary income surplus is revised upward to $59.8 billion from $59.0 billion. The secondary income deficit is revised downward to $34.8 billion from $34.9 billion. Third-quarter net borrowing from financial-account transactions is revised downward to $22.0 billion from $22.5 billion. Net U.S. acquisition of financial assets excluding financial derivatives is revised downward to $353.0 billion from $358.2 billion, and net U.S. incurrence of liabilities excluding financial derivatives is revised downward to $350.7 billion from $356.4 billion. * * * Release dates in 2015: Fourth Quarter and Year 2014....................................March 19, 2015 (Thursday) First Quarter 2015 and Annual Revisions..........................June 18, 2015 (Thursday) Second Quarter 2015.........................................September 17, 2015 (Thursday) Third Quarter 2015...........................................December 17, 2015 (Thursday) * * * 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 along with Highlights (www.bea.gov/newsreleases/international/transactions/2015/pdf/trans414_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/international/concepts_methods.htm) used to compile them. The fourth-quarter statistics in this release are preliminary and will be revised on June 18, 2015. All links in the text of this release—including archived versions of this release—refer to the latest available statistics. March 19, 2015 Table 1. U.S. International Transactions--Continues [Millions of dollars] Change: Seasonally adjusted Change: Line 2013 2014 p 2013 to 2013 2014 2014:III to 2014 IV I r II r III r IV p 2014:IV   Current account         1 Exports of goods and services and income receipts (credits).......................................... 3,178,744 3,291,353 112,609 814,014 806,984 832,195 831,295 820,879 -10,416 2 Exports of goods and services...................................................................... 2,280,194 2,344,528 64,334 581,692 575,003 587,389 591,629 590,507 -1,122 3 Goods............................................................................................ 1,592,784 1,635,133 42,349 407,103 400,442 409,620 414,991 410,080 -4,911 4 General merchandise............................................................................ 1,557,445 1,611,954 54,509 401,300 393,472 405,612 410,199 402,671 -7,528 5 Foods, feeds, and beverages.................................................................. 136,184 144,176 7,992 37,797 36,821 36,613 34,423 36,319 1,896 6 Industrial supplies and materials............................................................ 492,050 501,269 9,219 128,833 123,202 127,012 129,731 121,324 -8,407 7 Capital goods except automotive.............................................................. 534,552 550,310 15,758 134,877 134,523 137,189 139,243 139,355 112 8 Automotive vehicles, parts, and engines...................................................... 152,556 159,453 6,897 38,593 37,165 39,758 42,287 40,242 -2,045 9 Consumer goods except food and automotive.................................................... 188,359 198,542 10,183 47,373 48,300 50,073 50,227 49,942 -285 10 Other general merchandise.................................................................... 53,744 58,203 4,459 13,828 13,460 14,967 14,287 15,489 1,202 11 Net exports of goods under merchanting......................................................... 616 533 -83 149 141 116 137 138 1 12 Nonmonetary gold............................................................................... 34,724 22,646 -12,078 5,654 6,829 3,891 4,655 7,271 2,616 13 Services......................................................................................... 687,410 709,395 21,985 174,589 174,561 177,769 176,638 180,427 3,789 14 Maintenance and repair services n.i.e. ........................................................ 16,295 18,710 2,415 4,802 4,223 4,506 4,877 5,104 227 15 Transport...................................................................................... 87,267 90,237 2,970 22,180 22,028 22,437 22,720 23,052 332 16 Travel (for all purposes including education) /1/.............................................. 173,131 176,951 3,820 44,054 44,055 44,793 43,689 44,414 725 17 Insurance services............................................................................. 16,096 16,728 632 4,080 4,007 4,146 4,258 4,317 59 18 Financial services............................................................................. 84,066 88,418 4,352 22,081 21,180 22,706 21,385 23,148 1,763 19 Charges for the use of intellectual property n.i.e. ........................................... 129,178 132,653 3,475 31,866 32,758 33,774 32,890 33,230 340 20 Telecommunications, computer, and information services......................................... 33,409 33,356 -53 8,303 8,057 8,444 8,422 8,433 11 21 Other business services........................................................................ 123,447 128,527 5,080 31,570 31,687 31,094 32,774 32,973 199 22 Government goods and services n.i.e. .......................................................... 24,522 23,815 -707 5,653 6,565 5,870 5,623 5,757 134 23 Primary income receipts ........................................................................... 780,120 819,705 39,585 200,446 200,290 204,701 211,683 203,032 -8,651 24 Investment income................................................................................ 773,425 812,827 39,402 198,759 198,583 202,984 209,960 201,300 -8,660 25 Direct investment income....................................................................... 466,706 473,763 7,057 120,357 116,491 118,234 123,867 115,171 -8,696 26 Portfolio investment income.................................................................... 275,704 307,627 31,923 70,968 74,303 76,776 78,305 78,244 -61 27 Other investment income........................................................................ 30,637 31,135 498 7,368 7,693 7,900 7,718 7,824 106 28 Reserve asset income........................................................................... 377 302 -75 66 96 74 70 61 -9 29 Compensation of employees........................................................................ 6,695 6,878 183 1,686 1,707 1,716 1,723 1,732 9 30 Secondary income (current transfer) receipts /2/................................................... 118,429 127,120 8,691 31,876 31,691 40,105 27,984 27,340 -644 31 Imports of goods and services and income payments (debits)........................................... 3,578,998 3,701,981 122,983 901,330 907,953 929,484 930,214 934,330 4,116 32 Imports of goods and services...................................................................... 2,756,586 2,849,239 92,653 694,140 698,520 717,617 715,567 717,534 1,967 33 Goods............................................................................................ 2,294,453 2,370,920 76,467 576,193 581,712 597,862 596,083 595,263 -820 34 General merchandise............................................................................ 2,276,712 2,355,438 78,726 572,027 577,891 594,120 591,829 591,598 -231 35 Foods, feeds, and beverages.................................................................. 116,024 126,644 10,620 29,143 30,076 32,404 32,211 31,953 -258 36 Industrial supplies and materials............................................................ 686,594 671,030 -15,564 167,653 174,662 170,431 166,839 159,099 -7,740 37 Capital goods except automotive.............................................................. 557,839 595,655 37,816 142,281 142,978 148,717 151,071 152,890 1,819 38 Automotive vehicles, parts, and engines...................................................... 309,571 328,493 18,922 79,808 77,366 83,308 83,561 84,258 697 39 Consumer goods except food and automotive.................................................... 533,946 559,309 25,363 135,414 135,055 140,566 139,106 144,582 5,476 40 Other general merchandise.................................................................... 72,738 74,307 1,569 17,728 17,755 18,695 19,041 18,816 -225 41 Nonmonetary gold............................................................................... 17,741 15,482 -2,259 4,166 3,820 3,743 4,254 3,666 -588 42 Services......................................................................................... 462,134 478,319 16,185 117,947 116,809 119,755 119,485 122,271 2,786 43 Maintenance and repair services n.i.e. ........................................................ 7,620 7,590 -30 1,797 1,820 1,998 1,882 1,891 9 44 Transport...................................................................................... 90,754 94,410 3,656 23,299 22,960 23,379 23,581 24,490 909 45 Travel (for all purposes including education) /1/.............................................. 104,677 111,714 7,037 26,766 26,439 28,273 27,927 29,074 1,147 46 Insurance services............................................................................. 50,454 49,315 -1,139 12,348 11,966 12,331 12,357 12,660 303 47 Financial services............................................................................. 18,683 19,658 975 5,058 4,623 4,856 5,025 5,153 128 48 Charges for the use of intellectual property n.i.e. ........................................... 39,015 41,940 2,925 9,855 10,514 10,260 10,610 10,556 -54 49 Telecommunications, computer, and information services......................................... 32,877 33,261 384 8,415 8,276 8,298 8,332 8,356 24 50 Other business services........................................................................ 92,710 96,609 3,899 24,183 24,155 24,227 23,924 24,303 379 51 Government goods and services n.i.e. .......................................................... 25,343 23,822 -1,521 6,227 6,057 6,131 5,846 5,789 -57 52 Primary income payments............................................................................ 580,466 601,801 21,335 145,806 147,770 149,785 151,837 152,410 573 53 Investment income................................................................................ 564,897 585,931 21,034 141,857 143,942 145,788 147,843 148,357 514 54 Direct investment income....................................................................... 175,830 178,181 2,351 43,667 43,192 44,963 45,134 44,892 -242 55 Portfolio investment income.................................................................... 372,738 393,581 20,843 94,374 97,277 97,179 99,179 99,946 767 56 Other investment income........................................................................ 16,329 14,169 -2,160 3,815 3,473 3,646 3,530 3,519 -11 57 Compensation of employees........................................................................ 15,569 15,871 302 3,950 3,828 3,997 3,994 4,052 58 58 Secondary income (current transfer) payments /2/................................................... 241,945 250,940 8,995 61,384 61,663 62,082 62,810 64,386 1,576   Capital account 59 Capital transfer receipts and other credits.......................................................... 0 0 0 0 0 0 0 0 0 60 Capital transfer payments and other debits........................................................... 412 44 -368 (*) 43 2 0 n.a. n.a. March 19, 2015 Table 1. U.S. International Transactions--Table Ends [Millions of dollars] Change: Seasonally adjusted Change: Line 2013 2014 p 2013 to 2013 2014 2014:III to 2014 IV I r II r III r IV p 2014:IV Financial Account 61 Net U.S. acquisition of financial assets excluding financial   derivatives (net increase in assets / financial outflow (+))......................................... 644,763 820,488 175,725 195,454 146,352 243,944 352,996 77,195 -275,801 62 Direct investment assets........................................................................... 408,243 353,161 -55,082 104,296 34,606 93,508 96,775 128,272 31,497 63 Equity........................................................................................... 352,106 361,827 9,721 86,087 53,133 87,287 101,009 120,399 19,390 64 Debt instruments................................................................................. 56,137 -8,666 -64,803 18,210 -18,527 6,221 -4,233 7,873 12,106 65 Portfolio investment assets........................................................................ 489,877 547,405 57,528 155,892 100,674 195,471 161,457 89,803 -71,654 66 Equity and investment fund shares................................................................ 275,244 437,149 161,905 95,443 81,259 91,480 127,967 136,443 8,476 67 Debt securities.................................................................................. 214,633 110,256 -104,377 60,449 19,415 103,991 33,490 -46,640 -80,130 68 Short term..................................................................................... 45,373 11,608 -33,765 -14,913 -12,213 45,733 -3,885 -18,027 -14,142 69 Long term...................................................................................... 169,260 98,649 -70,611 75,362 31,629 58,258 37,374 -28,612 -65,986 70 Other investment assets............................................................................ -250,260 -76,496 173,764 -61,952 12,028 -45,809 95,653 -138,368 -234,021 71 Currency and deposits............................................................................ -115,641 -139,129 -23,488 -1,305 -32,979 -19,542 32,071 -118,679 -150,750 72 Loans............................................................................................ -137,978 75,477 213,455 -61,889 56,790 -27,586 65,578 -19,306 -84,884 73 Insurance technical reserves..................................................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 74 Trade credit and advances........................................................................ 3,359 -12,844 -16,203 1,242 -11,783 1,319 -1,996 -383 1,613 75 Reserve assets..................................................................................... -3,097 -3,583 -486 -2,782 -956 773 -889 -2,511 -1,622 76 Monetary gold.................................................................................... 0 0 0 0 0 0 0 0 0 77 Special drawing rights........................................................................... 22 23 1 6 8 8 4 3 -1 78 Reserve position in the International Monetary Fund.............................................. -3,438 -3,849 -411 -2,835 -1,040 710 -951 -2,568 -1,617 79 Other reserve assets............................................................................. 319 243 -76 47 76 55 59 54 -5 80 Currency and deposits.......................................................................... 3 5 2 1 2 2 1 1 0 81 Securities..................................................................................... 315 234 -81 45 72 51 58 53 -5 82 Financial derivatives.......................................................................... 0 0 0 0 0 0 0 0 0 83 Other claims................................................................................... 1 4 3 1 2 2 0 0 0 84 Net U.S. incurrence of liabilities excluding financial derivatives (net increase in liabilities / financial inflow (+))................................................. 1,017,669 908,601 -109,068 341,838 240,406 261,284 350,703 56,208 -294,495 85 Direct investment liabilities...................................................................... 294,972 93,054 -201,918 97,161 -121,051 78,021 86,358 49,726 -36,632 86 Equity........................................................................................... 226,834 77,156 -149,678 69,487 -99,763 63,641 62,355 50,922 -11,433 87 Debt instruments................................................................................. 68,138 15,899 -52,239 27,673 -21,288 14,380 24,003 -1,196 -25,199 88 Portfolio investment liabilities................................................................... 490,943 692,541 201,598 153,226 237,867 67,750 241,138 145,786 -95,352 89 Equity and investment fund shares................................................................ -85,407 169,869 255,276 -91,980 93,624 3,418 85,447 -12,620 -98,067 90 Debt securities.................................................................................. 576,351 522,672 -53,679 245,207 144,244 64,331 155,690 158,406 2,716 91 Short term..................................................................................... 46,718 19,588 -27,130 63,085 12,897 -27,363 -8,255 42,310 50,565 92 Long term...................................................................................... 529,632 503,084 -26,548 182,122 131,347 91,694 163,945 116,097 -47,848 93 Other investment liabilities....................................................................... 231,753 123,006 -108,747 91,451 123,590 115,513 23,207 -139,304 -162,511 94 Currency and deposits............................................................................ 172,286 47,923 -124,363 82,773 3,212 105,061 41,393 -101,743 -143,136 95 Loans............................................................................................ 47,606 67,843 20,237 4,994 110,910 7,340 -13,452 -36,954 -23,502 96 Insurance technical reserves..................................................................... n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 97 Trade credit and advances........................................................................ 11,861 7,239 -4,622 3,684 9,468 3,113 -4,735 -606 4,129 98 Special drawing rights allocations............................................................... 0 0 0 0 0 0 0 0 0 99 Financial derivatives other than reserves, net transactions /3/...................................... 2,248 -53,531 -55,779 2,929 5,277 -2,804 -24,267 -31,737 -7,470   Statistical discrepancy                   100 Statistical discrepancy /4/......................................................................... 30,008 269,027 239,019 -56,138 12,235 77,145 76,946 102,701 25,755   Balances                   101 Balance on current account (line 1 less line 31) /5/................................................ -400,254 -410,628 -10,374 -87,317 -100,969 -97,288 -98,919 -113,451 -14,532 102 Balance on goods and services (line 2 less line 32)............................................... -476,392 -504,711 -28,319 -112,448 -123,517 -130,228 -123,939 -127,028 -3,089 103 Balance on goods (line 3 less line 33).......................................................... -701,669 -735,787 -34,118 -169,090 -181,269 -188,242 -181,092 -185,183 -4,091 104 Balance on services (line 13 less line 42)...................................................... 225,276 231,076 5,800 56,642 57,752 58,015 57,153 58,156 1,003 105 Balance on primary income (line 23 less line 52).................................................. 199,654 217,904 18,250 54,639 52,519 54,916 59,846 50,623 -9,223 106 Balance on secondary income (line 30 less line 58)................................................ -123,515 -123,821 -306 -29,508 -29,972 -21,977 -34,826 -37,046 -2,220 107 Balance on capital account (line 59 less line 60) /5/............................................... -412 -44 368 (*) -43 -2 0 0 0 108 Net lending (+) or net borrowing (-) from current- and capital- account transactions (line 101 plus line 107) /6/................................................... -400,666 -410,672 -10,006 -87,317 -101,012 -97,290 -98,919 -113,451 -14,532 109 Net lending (+) or net borrowing (-) from financial-account transactions (line 61 less line 84 plus line 99) /6/................................................ -370,658 -141,644 229,014 -143,455 -88,777 -20,144 -21,973 -10,750 11,223 p Preliminary r Revised n.a. Not available (*) Transactions are between zero and +/- $500,000 1 All travel purposes include 1) business travel, including expenditures by border, seasonal, and other short-term workers and 2) personal travel, including health-related and education-related travel. 2 Secondary income (current transfer) receipts and payments include U.S. government and private transfers, such as U.S. government grants and pensions, fines and penalties, withholding taxes, personal transfers (remittances), insurance-related transfers, and other current transfers. 3 Transactions for financial derivatives are only available as a net value equal to transactions for assets less transactions for liabilities. A positive value represents net U.S. cash payments arising from derivatives contracts, and a negative value represents net U.S. cash receipts. 4 The statistical discrepancy, which can be calculated as line 109 less line 108, is the difference between total debits and total credits recorded in the current, capital, and financial accounts. In the current and capital accounts, credits and debits are labeled in the table. In the financial account, an acquisition of an asset or a repayment of a liability is a debit, and an incurrence of a liability or a disposal of an asset is a credit. 5 Current- and capital-account statistics in the international transactions accounts differ slightly from statistics in the National Income and Product Accounts (NIPAs) because of adjustments made to convert the international transactions statistics to national economic accounting concepts. A reconciliation between annual statistics in the two sets of accounts appears in NIPA table 4.3B. 6 Net lending means that U.S. residents are net suppliers of funds to foreign residents, and net borrowing means the opposite. Net lending or net borrowing can be computed from current- and capital-account transactions or from financial-account transactions. The two amounts differ by the statistical discrepancy. Note: Details may not add to totals because of rounding. Source: U. S. Bureau of Economic Analysis