 |
Available for this release:  Full Release: PDF (104 kb),  Tables: XLS (53 kb), Highlights (41 kb)
 |
|
Douglas B. Weinberg: (202) 606-9590 BEA 05-41
U.S. International Transactions: Second Quarter 2005
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 $195.7
billion in the second quarter of 2005 (preliminary) from $198.7 billion
(revised) in the first quarter. The decrease was more than accounted for by a
decrease in net outflows for unilateral current transfers. A small increase in
the surplus on services also contributed. In contrast, the balance on income
shifted to a deficit from a surplus, and the deficit on goods increased.
Goods and services
The deficit on goods and services increased to $173.3 billion in the
second quarter from $173.1 billion in the first.
Goods
The deficit on goods increased to $186.9 billion in the second quarter
from $186.3 billion in the first.
Goods exports increased to $223.5 billion from $213.8 billion. Much of
the increase was in capital goods, in industrial supplies and materials, and in
foods, feeds, and beverages.
Goods imports increased to $410.5 billion from $400.2 billion. Both
petroleum products and nonpetroleum products increased. The increase in
nonpetroleum products was mostly accounted for by an increase in capital goods.
Services
The surplus on services increased to $13.6 billion in the second
quarter from $13.3 billion in the first.
Services receipts increased to $93.7 billion from $92.6 billion. The
increase was more than accounted for by an increase in travel. Other
transportation (such as freight and port services) and passenger fares also
increased. These increases were partly offset by decreases in other private
services (such as business, professional, and technical services, insurance
services, and financial services), and in royalties and license fees.
Services payments increased to $80.1 billion from $79.3 billion.
Increases in other private services, in travel, and in passenger fares were
partly offset by a decrease in other transportation.
Income
The balance on income shifted to a deficit of $0.5 billion in the
second quarter from a surplus of $0.6 billion in the first.
Investment income
Income receipts on U.S.-owned assets abroad increased to $112.6 billion
from $106.2 billion. The increase was almost entirely accounted for by
increases in direct investment receipts and in other private receipts (which
consists of interest and dividends).
Income payments on foreign-owned assets in the United States increased
to $111.6 billion from $104.1 billion. 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) all contributed.
Compensation of employees
Receipts for compensation of U.S. workers abroad were virtually
unchanged at $0.8 billion, and payments for compensation of foreign workers in
the United States were virtually unchanged at $2.2 billion.
Unilateral current transfers
Unilateral current transfers were net outflows of $21.9 billion in the
second quarter, down from net outflows of $26.3 billion in the first. The
decrease was mostly attributable to a decrease in U.S. Government grants.
Capital and Financial Account
Capital Account
Capital account transactions were net outflows of $0.3 billion in the
second quarter, down from net outflows of $4.5 billion in the first.
Financial Account
Net recorded financial inflows--net acquisitions by foreign residents
of assets in the United States less net acquisitions by U.S. residents of
assets abroad--were $142.3 billion in the second quarter, down from $161.9
billion in the first. Financial outflows for U.S.-owned assets abroad picked
up more than financial inflows for foreign-owned assets in the United States.
U.S.-owned assets abroad
U.S.-owned assets abroad increased $250.8 billion in the second
quarter, following an increase of $81.5 billion in the first.
U.S. claims on foreigners reported by U.S. banks increased $171.0
billion in the second quarter, in contrast to a decrease of $49.3 billion in
the first.
Net U.S. purchases of foreign securities were $36.0 billion in the
second quarter, down from $38.7 billion in the first. Net U.S. purchases of
foreign stocks were $20.8 billion, down from $39.8 billion. Transactions in
foreign bonds shifted to net U.S. purchases of $15.2 billion from net U.S.
sales of $1.2 billion.
Net financial outflows for U.S. direct investment abroad were $33.6
billion in the second quarter, up from $27.0 billion in the first. Both net
equity capital outflows and reinvested earnings increased, and net intercompany
debt inflows decreased.
U.S. official reserve assets increased $0.8 billion in the second
quarter, in contrast to a decrease of $5.3 billion in the first.
Foreign-owned assets in the United States
Foreign-owned assets in the United States increased $393.1 billion in
the second quarter, following an increase of $243.5 billion in the first.
U.S. liabilities to foreigners reported by U.S. banks increased $168.9
billion in the second quarter, in contrast to a decrease of $67.7 billion in
the first.
Net foreign purchases of U.S. Treasury securities were $4.9 billion in
the second quarter, down from $75.9 billion in the first.
Net foreign purchases of U.S. securities other than U.S. Treasury
securities were $115.3 billion in the second quarter, up from $80.0 billion in
the first. Net foreign purchases of U.S. stocks were $12.7 billion, down from
$21.2 billion. Net foreign purchases of U.S. corporate bonds were $82.3
billion, up from $58.1 billion. Net foreign purchases of federally sponsored
agency bonds were $20.4 billion, up from $0.7 billion.
Net financial inflows for foreign direct investment in the United States
were $17.6 billion in the second quarter, down from $35.1 billion in the first.
The decrease was more than accounted for by a shift to net outflows on
intercompany debt from net inflows. A decrease in net equity capital inflows
also contributed. In contrast, reinvested earnings increased.
Foreign official assets in the United States increased $82.3 billion in
the second quarter, following an increase of $25.3 billion in the first.
Net U.S. currency shipments to foreigners were $4.5 billion in the
second quarter, up from $1.1 billion in the first.
The statistical discrepancy--errors and omissions in recorded
transactions--was a positive $53.6 billion in the second quarter, compared with
a positive $41.2 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.
The American Jobs Creation Act of 2004, which was signed into law on October
22, 2004, allows U.S. companies that repatriate an historically large amount of
earnings from their foreign subsidiaries for a period of 1 year (calendar year
2004 or calendar year 2005 at taxpayers' option, for calendar year taxpayers)
to be taxed at reduced rates on the increased distributions. In the current
account, distributed earnings that U.S. parent companies receive from their
foreign affiliates are one component of foreign affiliates' earnings; earnings
are recorded in direct investment income receipts when they are earned (table
1, line 14). The distribution of earnings affects only the form in which
earnings are received, and not its overall amount. For a given amount of
earnings, an increase in distributed earnings would lead to an equal and
offsetting decrease in reinvested earnings, the other component of foreign
affiliates' earnings. In the financial account, reinvested earnings on U.S.
direct investment abroad are one component of direct investment outflows (table
1, line 51). A decrease in reinvested earnings would therefore result in
smaller direct investment outflows. Depending on the method of settlement, the
decrease in direct investment outflows would be balanced or offset by changes
in one or more other financial account components. It is not possible for BEA
to separately identify transactions arising from the American Jobs Creation
Act. More information is available on BEA's Web site at
www.bea.gov/bea/faq/international/FAQ.htm.
Revisions
The first-quarter international transactions are revised from previously
published estimates. The current-account deficit was revised to $198.7 billion
from $195.1 billion. The goods deficit was unrevised at $186.3 billion; the
services surplus was revised to $13.3 billion from $14.6 billion; the income
surplus was revised to $0.6 billion from $3.8 billion; and unilateral current
transfers were revised to net outflows of $26.3 billion from $27.1 billion.
Net recorded financial inflows were revised to $161.9 billion from $165.4
billion.
* * *
Release dates in 2005:
Third quarter 2005...........................December 16, 2005 (Friday)
* * *
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 16, 2005
Table 1. U.S. International Transactions
[Millions of dollars, quarters seasonally adjusted]
2004 2005 Change:
(Credits +, debits -) 2004 2005
I II III IV I r II p I-II
Current account
1 Exports of goods and services and income receipts.............................. 1,530,975 363,494 376,564 385,874 405,041 413,395 430,628 17,233
2 Exports of goods and services.............................................. 1,151,448 277,093 285,099 290,370 298,887 306,444 317,284 10,840
3 Goods, balance of payments basis....................................... 807,536 193,789 200,072 204,801 208,874 213,840 223,540 9,700
4 Services............................................................... 343,912 83,304 85,027 85,569 90,013 92,604 93,744 1,140
5 Transfers under U.S. military agency sales contracts............... 14,814 3,899 3,756 3,604 3,555 4,525 4,485 -40
6 Travel............................................................. 74,481 17,900 18,675 18,686 19,220 20,008 21,564 1,556
7 Passenger fares.................................................... 18,858 4,521 4,654 4,909 4,774 5,162 5,342 180
8 Other transportation............................................... 36,862 8,907 9,188 9,124 9,643 9,859 10,164 305
9 Royalties and license fees......................................... 52,643 12,677 12,573 12,947 14,446 14,872 14,705 -167
10 Other private services............................................. 145,433 35,202 35,975 36,094 38,163 37,968 37,277 -691
11 U.S. Government miscellaneous services............................. 821 198 206 205 212 210 207 -3
12 Income receipts............................................................ 379,527 86,401 91,465 95,504 106,154 106,951 113,344 6,393
13 Income receipts on U.S.-owned assets abroad............................ 376,489 85,657 90,738 94,734 105,357 106,207 112,588 6,381
14 Direct investment receipts......................................... 233,067 55,096 57,053 57,863 63,053 58,180 61,682 3,502
15 Other private receipts............................................. 140,424 29,758 32,972 36,117 41,577 47,299 50,077 2,778
16 U.S. Government receipts........................................... 2,998 803 713 754 727 728 829 101
17 Compensation of employees.............................................. 3,038 744 727 770 797 744 756 12
18 Imports of goods and services and income payments.............................. -2,118,119 -487,324 -522,684 -537,085 -571,026 -585,804 -604,410 -18,606
19 Imports of goods and services.............................................. -1,769,031 -415,945 -437,141 -447,835 -468,108 -479,496 -490,611 -11,115
20 Goods, balance of payments basis....................................... -1,472,926 -345,241 -364,059 -372,576 -391,050 -400,169 -410,469 -10,300
21 Services............................................................... -296,105 -70,704 -73,082 -75,259 -77,058 -79,327 -80,142 -815
22 Direct defense expenditures........................................ -29,299 -7,099 -7,399 -7,433 -7,368 -7,545 -7,535 10
23 Travel............................................................. -65,635 -15,886 -16,491 -16,603 -16,655 -17,425 -18,127 -702
24 Passenger fares.................................................... -23,701 -5,740 -5,882 -5,896 -6,183 -6,221 -6,508 -287
25 Other transportation............................................... -54,169 -12,914 -13,158 -13,614 -14,483 -15,882 -14,835 1,047
26 Royalties and license fees......................................... -23,901 -5,407 -5,731 -6,591 -6,172 -6,429 -6,372 57
27 Other private services............................................. -95,666 -22,776 -23,492 -24,150 -25,246 -24,859 -25,808 -949
28 U.S. Government miscellaneous services............................. -3,734 -882 -929 -972 -951 -966 -957 9
29 Income payments............................................................ -349,088 -71,379 -85,543 -89,250 -102,918 -106,308 -113,799 -7,491
30 Income payments on foreign-owned assets in the United States........... -340,255 -69,219 -83,331 -87,040 -100,666 -104,140 -111,619 -7,479
31 Direct investment payments......................................... -105,146 -20,014 -27,973 -27,520 -29,640 -29,803 -32,612 -2,809
32 Other private payments............................................. -145,370 -29,040 -33,355 -36,246 -46,729 -48,333 -51,155 -2,822
33 U.S. Government payments........................................... -89,739 -20,165 -22,003 -23,274 -24,297 -26,004 -27,852 -1,848
34 Compensation of employees.............................................. -8,833 -2,160 -2,212 -2,210 -2,252 -2,168 -2,180 -12
35 Unilateral current transfers, net.............................................. -80,930 -22,271 -20,515 -15,771 -22,374 -26,259 -21,873 4,386
36 U.S. Government grants..................................................... -23,317 -7,744 -4,961 -4,911 -5,701 -9,035 -5,332 3,703
37 U.S. Government pensions and other transfers............................... -6,264 -1,554 -1,556 -1,548 -1,607 -1,558 -1,564 -6
38 Private remittances and other transfers.................................... -51,349 -12,973 -13,998 -9,312 -15,066 -15,666 -14,977 689
September 16, 2005
Table 1. U.S. International Transactions (Continued)
[Millions of dollars, quarters seasonally adjusted]
2004 2005 Change:
(Credits +, debits -) 2004 2005
I II III IV I r II p I-II
Capital and financial account
Capital account
39 Capital account transactions, net.............................................. -1,648 -428 -372 -393 -455 -4,466 -266 4,200
Financial account
40 U.S.-owned assets abroad, net (increase/financial outflow (-))................. -855,509 -295,140 -133,886 -137,525 -288,957 -81,510 -250,793 -169,283
41 U.S. official reserve assets, net.......................................... 2,805 557 1,122 429 697 5,331 -797 -6,128
42 Gold................................................................... .... .... .... .... .... .... .... ....
43 Special drawing rights................................................. -398 -100 -90 -98 -110 1,713 -97 -1,810
44 Reserve position in the International Monetary Fund.................... 3,826 815 1,345 676 990 3,763 -564 -4,327
45 Foreign currencies..................................................... -623 -158 -133 -149 -183 -145 -136 9
46 U.S. Government assets, other than official reserve assets, net............ 1,215 727 -2 -11 501 4,487 258 -4,229
47 U.S. credits and other long-term assets................................ -3,044 -561 -668 -1,270 -545 -519 -586 -67
48 Repayments on U.S. credits and other long-term assets.................. 4,221 1,374 544 1,299 1,004 1,083 838 -245
49 U.S. foreign currency holdings and U.S. short-term assets, net......... 38 -86 122 -40 42 3,923 6 -3,917
50 U.S. private assets, net................................................... -859,529 -296,424 -135,006 -137,943 -290,155 -91,328 -250,254 -158,926
51 Direct investment...................................................... -252,012 -52,367 -58,425 -41,222 -99,997 -26,997 -33,609 -6,612
52 Foreign securities..................................................... -102,383 -15,532 -30,181 -38,444 -18,226 -38,675 -36,004 2,671
53 U.S. claims on unaffiliated foreigners reported by
U.S. nonbanking concerns........................................... -149,001 -55,452 -5,390 -13,490 -74,669 -74,934 -9,642 65,292
54 U.S. claims reported by U.S. banks, not included elsewhere............. -356,133 -173,073 -41,010 -44,787 -97,263 49,278 -170,999 -220,277
55 Foreign-owned assets in the United States, net (increase/financial inflow (+)). 1,440,105 423,023 304,937 254,228 457,915 243,451 393,069 149,618
56 Foreign official assets in the United States, net.......................... 394,710 147,401 77,039 75,792 94,478 25,277 82,324 57,047
57 U.S. Government securities............................................. 311,133 124,010 63,456 66,899 56,768 39,244 44,341 5,097
58 U.S. Treasury securities........................................... 272,648 112,586 62,977 55,357 41,728 14,306 22,721 8,415
59 Other.............................................................. 38,485 11,424 479 11,542 15,040 24,938 21,620 -3,318
60 Other U.S. Government liabilities...................................... 488 -109 45 710 -158 -650 229 879
61 U.S. liabilities reported by U.S. banks, not included elsewhere........ 70,329 22,058 11,350 4,867 32,054 -15,843 33,663 49,506
62 Other foreign official assets.......................................... 12,760 1,442 2,188 3,316 5,814 2,526 4,091 1,565
63 Other foreign assets in the United States, net............................. 1,045,395 275,622 227,898 178,436 363,437 218,174 310,745 92,571
64 Direct investment...................................................... 106,832 8,503 31,039 35,666 31,622 35,056 17,590 -17,466
65 U.S. Treasury securities............................................... 106,958 31,931 60,424 -1,107 15,710 75,911 4,913 -70,998
66 U.S. securities other than U.S. Treasury securities.................... 369,793 45,476 81,678 84,401 158,238 79,973 115,335 35,362
67 U.S. currency.......................................................... 14,827 -1,800 8,754 2,560 5,313 1,072 4,507 3,435
68 U.S. liabilities to unaffiliated foreigners reported by
U.S. nonbanking concerns........................................... 124,358 44,623 3,887 14,752 61,096 93,897 -548 -94,445
69 U.S. liabilities reported by U.S. banks, not included elsewhere........ 322,627 146,889 42,116 42,164 91,458 -67,735 168,948 236,683
70 Statistical discrepancy (sum of above items with sign reversed)................ 85,126 18,646 -4,044 50,672 19,856 41,193 53,645 12,452
Memoranda:
71 Balance on goods (lines 3 and 20).............................................. -665,390 -151,452 -163,987 -167,775 -182,176 -186,329 -186,929 -600
72 Balance on services (lines 4 and 21)........................................... 47,807 12,600 11,945 10,310 12,955 13,277 13,602 325
73 Balance on goods and services (lines 2 and 19)................................. -617,583 -138,852 -152,042 -157,465 -169,221 -173,052 -173,327 -275
74 Balance on income (lines 12 and 29)............................................ 30,439 15,022 5,922 6,254 3,236 643 -455 -1,098
75 Unilateral current transfers, net (line 35).................................... -80,930 -22,271 -20,515 -15,771 -22,374 -26,259 -21,873 4,386
76 Balance on current account (lines 1, 18, and 35 or lines 73, 74, and 75)....... -668,074 -146,101 -166,635 -166,982 -188,359 -198,668 -195,655 3,013
r Revised. p Preliminary.
NOTE: Details may not add to totals because of rounding. Source: U. S. Bureau of Economic Analysis
|
|
