News Release
U.S. International Transactions: Second Quarter 2006
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Douglas B. Weinberg: (202) 606-9590 BEA 06-40
U.S. International Transactions: Second Quarter 2006
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
$218.4 billion (preliminary) in the second quarter of 2006 from $213.2 billion
(revised) in the first quarter. The increase was mostly accounted for by
increases in the deficits on goods and on income. Net unilateral current
transfers to foreigners also increased, and the surplus on services was
virtually unchanged.
Goods and services
The deficit on goods and services increased to $193.8 billion in the
second quarter from $191.1 billion in the first.
Goods
The deficit on goods increased to $210.6 billion in the second quarter
from $208.0 billion in the first.
Goods exports increased to $252.8 billion from $244.5 billion. The
increase was largely accounted for by increases in industrial supplies and
materials and in capital goods.
Goods imports increased to $463.4 billion from $452.5 billion. The
increase was largely accounted for by an increase in petroleum and products.
The largest increases in nonpetroleum products were in capital goods and in
consumer goods.
Services
The surplus on services was virtually unchanged at $16.8 billion in the
second quarter.
Services receipts increased to $103.0 billion from $99.9 billion. The
largest increases were in other private services (such as business,
professional, and technical services, insurance services, and financial
services), in travel, in royalties and license fees, and in other
transportation (such as freight and port services).
Services payments increased to $86.3 billion from $83.1 billion. The
largest increases were in other private services, in travel, and in passenger
fares.
Income
The deficit on income increased to $4.1 billion in the second quarter
from $2.5 billion in the first.
Investment income
Income receipts on U.S.-owned assets abroad increased to $153.5 billion
from $139.2 billion. Other private receipts (which consists of interest and
dividends) increased strongly, and direct investment receipts also increased.
Income payments on foreign-owned assets in the United States increased
to $156.0 billion from $140.1 billion. Other private payments (which
consists of interest and dividends) increased strongly, and U.S. Government
payments (which consists of interest) and direct investment payments also
increased.
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 were virtually unchanged at $2.3 billion.
Unilateral current transfers
Net unilateral current transfers to foreigners were $20.4 billion in
the second quarter, up from $19.5 billion in the first. The increase was
accounted for by increases in private remittances and other transfers and in
U.S. Government grants.
Capital and Financial Account
Capital Account
Capital account transactions were net outflows (payments) of $0.9
billion in the second quarter, down from net outflows of $1.8 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 $154.1 billion in the second quarter, down from $171.5
billion in the first. Net acquisitions by foreign residents slowed more than
net acquisitions by U.S. residents.
U.S.-owned assets abroad
U.S.-owned assets abroad increased $212.3 billion in the second quarter,
following an increase of $356.0 billion in the first.
U.S. claims on foreigners reported by U.S. banks increased $81.5
billion in the second quarter, following an increase of $196.4 billion in the
first.
Net U.S. purchases of foreign securities were $52.2 billion in the second
quarter, down from $53.7 billion in the first. Net U.S. purchases of foreign
stocks were $17.4 billion, down from $41.1 billion. Net U.S. purchases of
foreign bonds were $34.8 billion, up from $12.6 billion.
U.S. direct investment abroad increased $47.1 billion in the second
quarter, following an increase of $61.3 billion in the first. A shift to a
decrease in net intercompany debt investment abroad from an increase and a
slowdown in net equity capital investment abroad were partly offset by a pickup
in reinvested earnings.
U.S. official reserve assets increased $0.6 billion in the second
quarter, following a decrease of $0.5 billion in the first.
Foreign-owned assets in the United States
Foreign-owned assets in the United States increased $366.4 billion in
the second quarter, following an increase of $527.5 billion in the first.
U.S. liabilities to foreigners reported by U.S. banks increased $84.2
billion in the second quarter, following an increase of $148.9 billion in the
first.
Transactions in U.S. Treasury securities shifted to net foreign
purchases of $10.1 billion in the second quarter from net foreign sales of $5.2
billion in the first.
Net foreign purchases of U.S. securities other than U.S. Treasury
securities were $121.6 billion in the second quarter, down from $186.0 billion
in the first. Transactions in U.S. stocks shifted to net foreign sales of $1.6
billion from net foreign purchases of $54.0 billion. Net foreign purchases of
U.S. corporate bonds were a record $95.2 billion, up from $90.1 billion. Net
foreign purchases of federally sponsored agency bonds were $28.0 billion, down
from $41.9 billion.
Foreign direct investment in the United States increased $48.4 billion
in the second quarter, following an increase of $45.3 billion in the first. A
shift to an increase in net intercompany debt investment in the United States
from a decrease and a pickup in reinvested earnings were partly offset by a
slowdown in net equity capital investment in the United States.
Foreign official assets in the United States increased $74.9 billion in
the second quarter, following an increase of $75.7 billion in the first.
Net U.S. currency shipments to foreigners were $1.1 billion in the
second quarter, down from $1.9 billion in the first.
The statistical discrepancy--errors and omissions in recorded
transactions--was a positive $65.2 billion in the second quarter, compared with
a positive $43.4 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 $213.2 billion
from $208.7 billion. The goods deficit was unrevised at $208.0 billion; the
services surplus was revised to $16.8 billion from $17.2 billion; the balance
on income was revised to a deficit of $2.5 billion from a surplus of $1.9
billion; and unilateral current transfers were revised to net outflows of $19.5
billion from $19.9 billion. Net recorded financial inflows were revised to
$171.5 billion from $157.6 billion.
* * *
Release dates in 2006:
Fourth quarter and year 2005..................March 14, 2006 (Tuesday)
First quarter 2006..............................June 16, 2006 (Friday)
Second quarter 2006........................September 18, 2006 (Monday)
Third quarter 2006..........................December 18, 2006 (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 18, 2006
Table 1. U.S. International Transactions
[Millions of dollars, quarters seasonally adjusted]
2005 2006 Change:
(Credits +, debits -) 2005 2006
I II III IV I r II p I-II
Current account
1 Exports of goods and services and income receipts................................ 1,749,892 415,277 429,326 442,935 462,357 484,396 510,062 25,666
2 Exports of goods and services................................................. 1,275,245 306,580 316,645 320,853 331,165 344,430 355,879 11,449
3 Goods, balance of payments basis.......................................... 894,631 214,189 222,591 224,947 232,904 244,512 252,843 8,331
4 Services.................................................................. 380,614 92,391 94,054 95,906 98,261 99,918 103,036 3,118
5 Transfers under U.S. military agency sales contracts.................. 19,038 4,679 4,675 5,239 4,446 4,453 4,269 -184
6 Travel................................................................ 81,680 19,983 20,934 20,389 20,374 20,742 21,697 955
7 Passenger fares....................................................... 20,931 4,890 5,161 5,508 5,371 5,545 5,376 -169
8 Other transportation.................................................. 42,245 10,103 10,353 10,545 11,244 11,588 12,122 534
9 Royalties and license fees............................................ 57,410 14,146 13,943 14,397 14,923 15,040 15,601 561
10 Other private services................................................ 158,223 38,316 38,726 39,538 41,643 42,273 43,690 1,417
11 U.S. Government miscellaneous services................................ 1,087 274 262 291 260 277 281 4
12 Income receipts............................................................... 474,647 108,697 112,681 122,081 131,192 139,966 154,183 14,217
13 Income receipts on U.S.-owned assets abroad............................... 471,722 107,988 111,952 121,350 130,437 139,238 153,457 14,219
14 Direct investment receipts............................................ 251,370 58,846 60,572 64,476 67,481 68,738 72,911 4,173
15 Other private receipts................................................ 217,637 48,437 50,674 56,247 62,279 69,923 79,831 9,908
16 U.S. Government receipts.............................................. 2,715 705 706 627 677 577 715 138
17 Compensation of employees................................................. 2,925 709 729 731 755 728 726 -2
18 Imports of goods and services and income payments................................ -2,455,328 -579,764 -599,390 -616,886 -659,290 -678,052 -708,028 -29,976
19 Imports of goods and services................................................. -1,991,975 -474,688 -488,703 -502,645 -525,939 -535,570 -549,696 -14,126
20 Goods, balance of payments basis.......................................... -1,677,371 -397,457 -410,811 -423,693 -445,410 -452,481 -463,441 -10,960
21 Services.................................................................. -314,604 -77,231 -77,892 -78,952 -80,529 -83,089 -86,255 -3,166
22 Direct defense expenditures........................................... -30,062 -7,542 -7,478 -7,539 -7,503 -7,692 -7,858 -166
23 Travel................................................................ -69,175 -17,270 -17,589 -17,181 -17,135 -17,634 -18,658 -1,024
24 Passenger fares....................................................... -26,066 -6,213 -6,555 -6,654 -6,644 -6,749 -7,266 -517
25 Other transportation.................................................. -62,107 -15,617 -15,135 -15,205 -16,150 -16,232 -16,390 -158
26 Royalties and license fees............................................ -24,501 -5,880 -6,004 -6,356 -6,261 -6,741 -6,760 -19
27 Other private services................................................ -98,714 -23,699 -24,169 -25,001 -25,845 -27,045 -28,309 -1,264
28 U.S. Government miscellaneous services................................ -3,979 -1,010 -962 -1,016 -991 -996 -1,014 -18
29 Income payments............................................................... -463,353 -105,076 -110,687 -114,240 -133,351 -142,482 -158,332 -15,850
30 Income payments on foreign-owned assets in the United States.............. -454,124 -102,817 -108,403 -111,887 -131,018 -140,132 -155,983 -15,851
31 Direct investment payments............................................ -116,953 -28,490 -29,520 -24,105 -34,839 -34,443 -36,889 -2,446
32 Other private payments................................................ -223,612 -48,786 -51,490 -58,479 -64,857 -72,813 -82,827 -10,014
33 U.S. Government payments.............................................. -113,559 -25,541 -27,393 -29,303 -31,322 -32,876 -36,267 -3,391
34 Compensation of employees................................................. -9,229 -2,259 -2,284 -2,353 -2,333 -2,350 -2,349 1
35 Unilateral current transfers, net................................................ -86,072 -27,237 -23,194 -9,464 -26,176 -19,542 -20,444 -902
36 U.S. Government grants........................................................ -31,362 -9,221 -5,780 -7,270 -9,091 -4,631 -4,940 -309
37 U.S. Government pensions and other transfers.................................. -6,303 -1,558 -1,569 -1,584 -1,592 -1,742 -1,753 -11
38 Private remittances and other transfers....................................... -48,407 -16,458 -15,845 -610 -15,493 -13,169 -13,751 -582
September 18, 2006
Table 1. U.S. International Transactions (Continued)
[Millions of dollars, quarters seasonally adjusted]
2005 2006 Change:
(Credits +, debits -) 2005 2006
I II III IV I r II p I-II
Capital and financial account
Capital account
39 Capital account transactions, net................................................ -4,351 -2,691 -589 -557 -514 -1,756 -882 874
Financial account
40 U.S.-owned assets abroad, net (increase/financial outflow (-))................... -426,801 -87,391 -196,376 -132,380 -10,656 -355,978 -212,339 143,639
41 U.S. official reserve assets, net............................................. 14,096 5,331 -797 4,766 4,796 513 -560 -1,073
42 Gold...................................................................... .... .... .... .... .... .... .... ....
43 Special drawing rights.................................................... 4,511 1,713 -97 2,976 -81 -67 -51 16
44 Reserve position in the International Monetary Fund....................... 10,200 3,763 -564 1,951 5,050 729 -351 -1,080
45 Foreign currencies........................................................ -615 -145 -136 -161 -173 -149 -158 -9
46 U.S. Government assets, other than official reserve assets, net............... 5,539 2,591 989 1,501 459 1,049 1,479 430
47 U.S. credits and other long-term assets................................... -2,255 -519 -708 -518 -509 -1,517 -373 1,144
48 Repayments on U.S. credits and other long-term assets..................... 5,603 1,083 1,586 1,957 977 2,558 1,861 -697
49 U.S. foreign currency holdings and U.S. short-term assets, net............ 2,191 2,027 111 62 -9 8 -9 -17
50 U.S. private assets, net...................................................... -446,436 -95,313 -196,568 -138,647 -15,911 -357,540 -213,258 144,282
51 Direct investment......................................................... -9,072 -31,259 -33,957 30,342 25,799 -61,251 -47,102 14,149
52 Foreign securities........................................................ -180,125 -50,367 -45,702 -36,790 -47,266 -53,692 -52,215 1,477
53 U.S. claims on unaffiliated foreigners reported by
U.S. nonbanking concerns.............................................. -44,221 -67,170 57,244 -29,483 -4,812 -46,190 -32,408 13,782
54 U.S. claims reported by U.S. banks, not included elsewhere................ -213,018 53,483 -174,153 -102,716 10,368 -196,407 -81,533 114,874
55 Foreign-owned assets in the United States, net (increase/financial inflow (+))... 1,212,250 224,128 346,179 388,592 253,350 527,498 366,397 -161,101
56 Foreign official assets in the United States, net............................. 199,495 18,965 74,613 33,983 71,934 75,697 74,874 -823
57 U.S. Government securities................................................ 156,450 33,007 36,313 25,926 61,204 66,219 21,553 -44,666
58 U.S. Treasury securities.............................................. 71,749 9,226 16,892 8,213 37,418 42,156 -8,905 -51,061
59 Other................................................................. 84,701 23,781 19,421 17,713 23,786 24,063 30,458 6,395
60 Other U.S. Government liabilities......................................... -488 -740 112 395 -255 37 637 600
61 U.S. liabilities reported by U.S. banks, not included elsewhere........... 24,275 -15,814 34,187 824 5,078 -821 41,730 42,551
62 Other foreign official assets............................................. 19,258 2,512 4,001 6,838 5,907 10,262 10,954 692
63 Other foreign assets in the United States, net................................ 1,012,755 205,163 271,566 354,609 181,416 451,801 291,523 -160,278
64 Direct investment......................................................... 109,754 30,539 8,245 44,459 26,510 45,268 48,413 3,145
65 U.S. Treasury securities.................................................. 199,491 86,108 14,103 37,239 62,041 -5,212 10,065 15,277
66 U.S. securities other than U.S. Treasury securities....................... 474,140 77,412 111,808 153,049 131,871 186,009 121,556 -64,453
67 U.S. currency............................................................. 19,416 1,072 4,507 4,679 9,158 1,932 1,127 -805
68 U.S. liabilities to unaffiliated foreigners reported by
U.S. nonbanking concerns.............................................. 30,105 80,174 -20,035 20,271 -50,305 74,953 26,115 -48,838
69 U.S. liabilities reported by U.S. banks, not included elsewhere........... 179,849 -70,142 152,938 94,912 2,141 148,851 84,247 -64,604
70 Statistical discrepancy (sum of above items with sign reversed).................. 10,410 57,678 44,044 -72,240 -19,071 43,434 65,234 21,800
Memoranda:
71 Balance on goods (lines 3 and 20)................................................ -782,740 -183,268 -188,220 -198,746 -212,506 -207,969 -210,598 -2,629
72 Balance on services (lines 4 and 21)............................................. 66,011 15,160 16,162 16,954 17,733 16,829 16,781 -48
73 Balance on goods and services (lines 2 and 19)................................... -716,730 -168,108 -172,058 -181,792 -194,774 -191,140 -193,817 -2,677
74 Balance on income (lines 12 and 29).............................................. 11,293 3,621 1,994 7,841 -2,159 -2,516 -4,149 -1,633
75 Unilateral current transfers, net (line 35)...................................... -86,072 -27,237 -23,194 -9,464 -26,176 -19,542 -20,444 -902
76 Balance on current account (lines 1, 18, and 35 or lines 73, 74, and 75)......... -791,508 -191,724 -193,258 -183,415 -223,109 -213,198 -218,410 -5,212
r Revised
p Preliminary
NOTE: Details may not add to totals because of rounding. Source: U. S. Bureau of Economic Analysis