News Release
U.S. International Transactions Second Quarter 2000
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Harlan W. King: (202) 606-9571 BEA 00-28
Recorded Message: 606-5362
U.S. International Transactions: Second Quarter 2000
Current Account
The U.S. current-account deficit--the combined balances on trade in goods and services,
income, and net unilateral current transfers--increased to $106.1 billion in the second quarter
from $101.5 billion (revised) in the first, according to preliminary estimates of the Bureau of
Economic Analysis. The increase was nearly all accounted for by an increase in the deficit on
goods.
Goods and services
The deficit on goods and services increased to $89.3 billion in the second quarter from
$85.1 billion in the first.
Goods
The deficit on goods increased to $110.2 billion in the second quarter from
$105.8 billion in the first.
Goods exports increased to $191.8 billion from $183.7 billion. The increase was mostly
accounted for by an increase in capital goods, especially computers, semiconductors,
telecommunications equipment, and civilian aircraft.
Goods imports increased to $302.0 billion from $289.6 billion. The increase was largely
accounted for by increases in capital goods, especially computers and telecommunications
equipment, and in consumer goods. The increase in petroleum products slowed, as petroleum
prices rose considerably less than in recent quarters.
Services
The surplus on services increased to $21.0 billion in the second quarter from
$20.7 billion in the first.
Service receipts increased to $73.3 billion from $72.2 billion. The increase was
accounted for by increases in royalties and license fees and in travel.
Service payments increased to $52.4 billion from $51.5 billion. The increase was mostly
accounted for by increases in travel, in "other" transportation, and in passenger fares.
Income
The deficit on income increased to $4.5 billion in the second quarter from $4.4 billion in
the first.
Investment income
Income receipts on U.S.-owned assets abroad increased to $86.4
billion from $80.3 billion. The increase was mainly accounted for by increases in direct
investment receipts and in "other" private receipts.
Income payments on foreign-owned assets in the United States increased to $89.5 billion
from $83.3 billion. The increase was mainly accounted for by increases in "other" private
payments and in direct investment payments.
Compensation of employees
Receipts for compensation of U.S. workers abroad were
unchanged at $0.6 billion. Payments for compensation of foreign workers in the United States
were unchanged at $2.0 billion.
Unilateral current transfers
Net unilateral current transfers increased slightly to $12.3 billion from $12.0 billion,
mostly as a result of an increase in U.S. Government grants.
Capital and Financial Account
Capital Account
Net capital account transactions were unchanged at $0.2 billion.
Financial Account
Net recorded financial inflows--the difference between changes in U.S.-owned assets
abroad and changes in foreign-owned assets in the United States--were $149.1 billion in the
second quarter, up from $57.6 billion (revised) in the first.
U.S.-owned assets abroad
U.S.-owned assets abroad increased $73.6 billion in the second quarter, following an
increase of $179.0 billion in the first.
U.S. claims on foreigners reported by U.S. banks decreased $14.9 billion in the second
quarter, in contrast to an increase of $55.5 billion in the first. The decrease in second-quarter
lending reflected little lending to banks abroad and a large decrease in banks' domestic
customers' claims, both of which were in response to unsettled conditions in world financial
markets.
Net U.S. purchases of foreign securities were $26.4 billion in second quarter, down from
$27.2 billion in the first. Net U.S. purchases of foreign stocks doubled to $33.7 billion,
primarily as a result of exchanges of stock related to acquisitions of U.S. companies by foreign
companies; non-merger related transactions resulted in net sales of other stocks, reflecting a
sharp decline in equity prices abroad. Transactions in foreign bonds shifted to net U.S. sales of
$7.4 billion from net U.S. purchases of $11.4 billion, partly in response to the sharp increase in
U.S. bond yields in May.
Net financial outflows for U.S. direct investment abroad were $37.5 billion in the second
quarter, down from $43.0 billion in the first. Net intercompany debt shifted to inflows, while
net equity capital outflows nearly doubled, and reinvested earnings edged up.
U.S. official reserve assets decreased $2.0 billion in the second quarter, following an
increase of $0.6 billion in the first.
Foreign-owned assets in the United States
Foreign-owned assets in the United States increased $222.7 billion in the second quarter,
following an increase of $236.5 billion in the first.
Net foreign purchases of U.S. securities other than U.S. Treasury securities were $86.5
billion in the second quarter, down from record net purchases of $132.4 billion in the first. In
the second quarter, net foreign purchases of U.S. stocks were $26.1 billion, down from $61.2
billion, partly in response to the sharp decline in U.S. equity prices early in the quarter, and net
foreign purchases of U.S. corporate and other bonds were $60.5 billion, down from $71.2
billion.
U.S. liabilities to foreigners reported by U.S. banks, excluding U.S. Treasury securities,
increased $48.7 billion in the second quarter, following a decrease of $8.8 billion in the first.
Most of the second-quarter increase was attributable to a sharp rise in banks' own liabilities,
mostly to own foreign offices, as U.S. banks borrowed heavily from abroad to meet the higher
demand for short-term funds in U.S. banking and securities markets.
Net financial inflows for foreign direct investment in the United States were $79.7 billion
in the second quarter, up sharply from $49.0 billion in the first. Net equity capital inflows rose
sharply as a result of increased acquisitions of U.S. companies by foreign companies.
Reinvested earnings increased slightly, and net intercompany debt inflows decreased.
Net foreign sales of U.S. Treasury securities were $20.7 billion in the second quarter, up
from net sales of $9.2 billion in the first. The step-up in net sales was partly attributable to
lower yields on longer-term Treasury bonds.
Net U.S. currency shipments to foreign countries were $1.0 billion in the second quarter,
in contrast to net shipments from foreign countries to the United States of $6.8 billion in the
first.
Foreign official assets in the United States increased $5.9 billion in the second quarter,
following an increase of $22.0 billion in the first. There were net sales of U.S. Treasury
securities in the second quarter.
The statistical discrepancy--errors and omissions in recorded transactions--was a negative
$43.1 billion in the second quarter, compared with a positive $43.8 billion in the first.
In the second quarter, the U.S. dollar appreciated 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 for the first quarter was revised to $101.5 billion from
$102.3 billion. The goods deficit was unchanged at $105.8 billion; the services surplus was
revised to $20.7 billion from $19.7 billion; the deficit on income was revised to $4.4 billion
from $4.2 billion; and net unilateral current transfers was revised to $12.0 billion from $11.9
billion. Net recorded financial inflows were revised to $57.6 billion from $71.7 billion.
* * *
Next release:
Third quarter 2000............................................December 14, 2000 (Thursday)
* * *
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Summary BEA estimates are available on recorded messages at the time of public release
at the following telephone numbers:
(202) 606-5362 U.S. international transactions
-5306 Gross domestic product
-5303 Personal income and outlays
Most of BEA's estimates and analyses appear in the Survey of Current Business, BEA's
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of Documents, U.S. Government Printing Office, Washington, D.C. 20402. First class mail:
Annual subscription $120.00 domestic. Second class mail: Annual subscription $48.00
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September 13, 2000
Table 1.--U.S. International Transactions
[Millions of dollars, quarters seasonally adjusted]
1999 2000 Change:
(Credits +, debits -) 1999 2000
I II III IV Ir IIp I-II
Current account
1 Exports of goods and services and income receipts.................................. 1,232,407 293,717 300,994 313,084 324,612 336,854 352,085 15,231
2 Exports of goods and services................................................. 956,242 230,321 234,297 241,969 249,653 255,977 265,133 9,156
3 Goods, balance of payments basis1......................................... 684,358 163,949 166,443 173,881 180,085 183,728 191,810 8,082
4 Services2................................................................. 271,884 66,372 67,854 68,088 69,568 72,249 73,323 1,074
5 Transfers under U.S. military agency sales contracts.................. 16,334 4,240 4,561 3,944 3,589 3,574 3,722 148
6 Travel................................................................ 74,881 18,140 18,564 18,695 19,482 20,431 20,749 318
7 Passenger fares....................................................... 19,776 4,814 4,902 5,105 4,955 5,062 5,088 26
8 Other transportation.................................................. 27,033 6,515 6,692 6,728 7,097 7,252 7,397 145
9 Royalties and license fees........................................... 36,467 9,114 9,140 9,106 9,107 9,353 9,685 332
10 Other private services............................................... 96,508 23,346 23,772 24,271 25,118 26,373 26,469 96
11 U.S. Government miscellaneous services............................... 885 203 223 239 220 204 213 9
12 Income receipts............................................................... 276,165 63,396 66,697 71,115 74,959 80,877 86,952 6,075
13 Income receipts on U.S.-owned assets abroad.............................. 273,957 62,861 66,149 70,556 74,393 80,302 86,370 6,068
14 Direct investment receipts........................................... 118,802 26,946 28,804 31,361 31,691 34,116 37,192 3,076
15 Other private receipts............................................... 151,958 35,004 36,535 38,449 41,970 45,091 47,932 2,841
16 U.S. Government receipts............................................. 3,197 911 810 746 732 1,095 1,246 151
17 Compensation of employees................................................ 2,208 535 548 559 566 575 582 7
18 Imports of goods and services and income payments.................................. -1,515,861 -349,513 -368,439 -391,337 -406,575 -426,335 -445,887 -19,552
19 Imports of goods and services................................................. -1,221,213 -282,997 -297,597 -314,687 -325,933 -341,094 -354,392 -13,298
20 Goods, balance of payments basis1......................................... -1,029,917 -236,973 -250,427 -266,199 -276,318 -289,566 -302,026 -12,460
21 Services2................................................................. -191,296 -46,024 -47,170 -48,488 -49,615 -51,528 -52,366 -838
22 Direct defense expenditures........................................... -13,650 -3,293 -3,373 -3,626 -3,358 -3,322 -3,350 -28
23 Travel................................................................ -59,351 -14,560 -14,718 -14,799 -15,274 -15,837 -16,107 -270
24 Passenger fares....................................................... -21,405 -5,215 -5,274 -5,348 -5,568 -5,777 -5,964 -187
25 Other transportation.................................................. -34,137 -7,784 -8,187 -8,953 -9,214 -9,582 -9,791 -209
26 Royalties and license fees........................................... -13,275 -3,081 -3,224 -3,314 -3,656 -3,590 -3,702 -112
27 Other private services............................................... -46,657 -11,401 -11,719 -11,682 -11,855 -12,706 -12,738 -32
28 U.S. Government miscellaneous services............................... -2,821 -690 -675 -766 -690 -714 -714 ....
29 Income payments............................................................... -294,648 -66,516 -70,842 -76,650 -80,642 -85,241 -91,495 -6,254
30 Income payments on foreign-owned assets in the United States............. -287,059 -64,636 -68,962 -74,749 -78,712 -83,289 -89,515 -6,226
31 Direct investment payments........................................... -56,098 -10,916 -14,106 -15,660 -15,416 -17,048 -18,771 -1,723
32 Other private payments............................................... -135,830 -31,051 -31,701 -34,942 -38,136 -40,167 -43,843 -3,676
33 U.S. Government payments............................................. -95,131 -22,669 -23,155 -24,147 -25,160 -26,074 -26,901 -827
34 Compensation of employees................................................ -7,589 -1,880 -1,880 -1,901 -1,930 -1,952 -1,980 -28
35 Unilateral current transfers, net.................................................. -48,025 -10,831 -11,537 -11,396 -14,260 -12,024 -12,336 -312
36 U.S. Government grants........................................................ -13,774 -2,574 -3,097 -2,847 -5,256 -2,912 -3,180 -268
37 U.S. Government pensions and other transfers.................................. -4,401 -1,066 -1,074 -1,080 -1,181 -1,114 -1,113 1
38 Private remittances and other transfers....................................... -29,850 -7,191 -7,366 -7,469 -7,823 -7,998 -8,043 -45
Table 1.--U.S. International Transactions (Continued) September 13, 2000
[Millions of dollars, quarters seasonally adjusted]
1999 2000 Change:
(Credits +, debits -) 1999 2000
I II III IV Ir IIp I-II
Capital and financial account
Capital account
39 Capital account transactions, net.................................................. -3,500 157 165 171 -3,993 166 163 -3
Financial account
40 U.S.-owned assets abroad, net (increase/financial outflow (-))..................... -430,187 -21,555 -170,842 -122,909 -114,882 -178,958 -73,648 105,310
41 U.S. official reserve assets, net.............................................. 8,747 4,068 1,159 1,951 1,569 -554 2,020 2,574
42 Gold...................................................................... .... .... .... .... .... .... .... ....
43 Special drawing rights.................................................... 10 562 -190 -184 -178 -180 -180 ....
44 Reserve position in the International Monetary Fund....................... 5,484 3 1,413 2,268 1,800 -237 2,328 2,565
45 Foreign currencies........................................................ 3,253 3,503 -64 -133 -53 -137 -128 9
46 U.S. Government assets, other than official reserve assets, net................ 2,751 118 -392 -686 3,711 -131 -572 -441
47 U.S. credits and other long-term assets................................... -6,175 -1,314 -2,167 -1,595 -1,099 -1,750 -1,229 521
48 Repayments on U.S. credits and other long-term assets..................... 9,560 1,554 1,887 1,026 5,093 1,328 715 -613
49 U.S. foreign currency holdings and U.S. short-term assets, net............ -634 -122 -112 -117 -283 291 -58 -349
50 U.S. private assets, net....................................................... -441,685 -25,741 -171,609 -124,174 -120,162 -178,273 -75,096 103,177
51 Direct investment......................................................... -150,901 -41,112 -32,958 -43,552 -33,280 -42,963 -37,495 5,468
52 Foreign securities........................................................ -128,594 1,107 -71,131 -41,420 -17,150 -27,236 -26,350 886
53 U.S. claims on unaffiliated foreigners reported by
U.S. nonbanking concerns............................................. -92,328 -14,223 -25,734 -27,943 -24,428 -52,563 -26,112 26,451
54 U.S. claims reported by U.S. banks, not included elsewhere................ -69,862 28,487 -41,786 -11,259 -45,304 -55,511 14,861 70,372
55 Foreign-owned assets in the United States, net (increase/financial inflow (+))..... 753,564 102,780 272,008 194,210 184,567 236,535 222,736 -13,799
56 Foreign official assets in the United States, net.............................. 42,864 4,274 -1,096 12,191 27,495 22,015 5,905 -16,110
57 U.S. Government securities................................................ 32,527 6,793 -916 14,798 11,852 24,305 6,334 -17,971
58 U.S. Treasury securities.............................................. 12,177 800 -6,708 12,963 5,122 16,198 -4,000 -20,198
59 Other................................................................. 20,350 5,993 5,792 1,835 6,730 8,107 10,334 2,227
60 Other U.S. Government liabilities......................................... -3,255 -1,485 -1,099 -760 89 -644 -772 -128
61 U.S. liabilities reported by U.S. banks, not included elsewhere........... 12,692 -1,139 1,436 -2,032 14,427 -2,577 -561 2,016
62 Other foreign official assets............................................. 900 105 -517 185 1,127 931 904 -27
63 Other foreign assets in the United States, net................................. 710,700 98,506 273,104 182,019 157,072 214,520 216,831 2,311
64 Direct investment......................................................... 275,533 26,779 143,802 55,563 49,390 48,962 79,699 30,737
65 U.S. Treasury securities.................................................. -20,464 -7,505 -5,407 9,639 -17,191 -9,248 -20,661 -11,413
66 U.S. securities other than U.S. Treasury securities....................... 331,523 62,815 80,838 95,620 92,250 132,416 86,547 -45,869
67 U.S. currency............................................................. 22,407 2,440 3,057 4,697 12,213 -6,847 989 7,836
68 U.S. liabilities to unaffiliated foreigners reported by
U.S. nonbanking concerns............................................ 34,298 27,928 13,663 -8,085 792 58,061 21,597 -36,464
69 U.S. liabilities reported by U.S. banks, not included elsewhere........... 67,403 -13,951 37,151 24,585 19,618 -8,824 48,660 57,484
70 Statistical discrepancy (sum of above items with sign reversed).................... 11,602 -14,755 -22,349 18,177 30,531 43,762 -43,113 -86,875
Memoranda:
71 Balance on goods (lines 3 and 20).................................................. -345,559 -73,024 -83,984 -92,318 -96,233 -105,838 -110,216 -4,378
72 Balance on services (lines 4 and 21)............................................... 80,588 20,348 20,684 19,600 19,953 20,721 20,957 236
73 Balance on goods and services (lines 2 and 19)..................................... -264,971 -52,676 -63,300 -72,718 -76,280 -85,117 -89,259 -4,142
74 Balance on income (lines 12 and 29)................................................ -18,483 -3,120 -4,145 -5,535 -5,683 -4,364 -4,543 -179
75 Unilateral current transfers, net (line 35)........................................ -48,025 -10,831 -11,537 -11,396 -14,260 -12,024 -12,336 -312
76 Balance on current account (lines 1, 18, and 35 or lines 73, 74, and 75)........... -331,479 -66,627 -78,982 -89,649 -96,223 -101,505 -106,138 -4,633
r Revised. p Preliminary.
1. Adjusted for timing, valuation, and coverage to balance of payments basis; excludes exports under U. S. military agency sales
contracts and imports of U. S. military agencies.
2. Includes some goods that cannot be separately identified from services.
NOTE:--Details may not add to totals because of rounding. Source: U. S. Department of Commerce, Bureau of Economic Analysis
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