News Release
U.S. International Transactions: Third Quarter 2006
Available for this release: Full Release (PDF - ) | Tables (XLS - ), Highlights (PDF - )
Sign up for e-mail subscriptions.
Douglas B. Weinberg: (202) 606-9590 BEA 06-56
U.S. International Transactions: Third 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
$225.6 billion (preliminary) in the third quarter of 2006 from $217.1 billion
(revised) in the second quarter. The increase was more than accounted for by
increases in the deficits on goods and on income. The surplus on services
increased, and net unilateral current transfers to foreigners decreased.
Goods and services
The deficit on goods and services increased to $200.3 billion in the
third quarter from $193.1 billion in the second.
Goods
The deficit on goods increased to $218.6 billion in the third quarter
from $210.6 billion in the second.
Goods exports increased to $262.1 billion from $252.8 billion. The
increase resulted from increases in all major commodity categories.
Goods imports increased to $480.7 billion from $463.4 billion. The
increase resulted from increases in petroleum and products and in most major
categories of nonpetroleum products.
Services
The surplus on services increased to $18.3 billion in the third quarter
from $17.5 billion in the second.
Services receipts increased to $104.0 billion from $103.1 billion. The
increase was more than accounted for by an increase in other private services
(such as business, professional, and technical services, insurance services,
and financial services). Most other services categories changed little.
Services payments edged up to $85.7 billion from $85.6 billion.
Increases in other private services and in other transportation (such as
freight and port services) were largely offset by decreases in travel and in
passenger fares.
Income
The deficit on income increased to $3.8 billion in the third quarter
from $2.2 billion in the second.
Investment income
Income receipts on U.S.-owned assets abroad increased to $160.1 billion
from $155.3 billion. The increase was largely accounted for by an increase in
other private receipts (which consists of interest and dividends). Direct
investment receipts also increased.
Income payments on foreign-owned assets in the United States increased
to $162.2 billion from $155.8 billion. Direct investment payments, other
private payments (which consists of interest and dividends), and U.S.
Government payments (which consists of interest) all 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 also were virtually unchanged at $2.4 billion.
Unilateral current transfers
Net unilateral current transfers to foreigners were $21.5 billion in
the third quarter, down from $21.9 billion in the second. The decrease was
more than accounted for by a decrease in private remittances and other
transfers.
Capital and Financial Account
Capital Account
Net capital account payments (outflows) were $0.6 billion in the third
quarter, down from $1.0 billion in the second.
Financial Account
Net financial inflows--net acquisitions by foreign residents of assets
in the United States less net acquisitions by U.S. residents of assets abroad--
were $176.4 billion in the third quarter, up from $153.2 billion in the second.
Net acquisitions by foreign residents strengthened more than net acquisitions
by U.S. residents.
U.S.-owned assets abroad
U.S.-owned assets abroad increased $223.8 billion in the third quarter,
following an increase of $211.4 billion in the second.
U.S. claims on foreigners reported by U.S. banks increased $85.7
billion in the third quarter, following an increase of $80.7 billion in the
second.
Net U.S. purchases of foreign securities were $53.0 billion in the
third quarter, down slightly from $53.9 billion in the second. Net U.S.
purchases of foreign stocks were $8.0 billion, down from $17.0 billion.
Net U.S. purchases of foreign bonds were $45.1 billion, up from $36.9 billion.
U.S. direct investment abroad increased $63.1 billion in the third
quarter, following an increase of $46.8 billion in the second. The pickup was
largely attributable to a shift to an increase in net intercompany debt investment
abroad from a decrease. In addition, net equity capital investment abroad
picked up. In contrast, reinvested earnings decreased.
U.S. official reserve assets decreased $1.0 billion in the third
quarter, following an increase of $0.6 billion in the second.
Foreign-owned assets in the United States
Foreign-owned assets in the United States increased $400.2 billion in
the third quarter, following an increase of $364.6 billion in the second.
U.S. liabilities to foreigners reported by U.S. banks increased $89.1
billion in the third quarter, following an increase of $79.6 billion in the
second.
Transactions in U.S. Treasury securities shifted to net sales by
foreigners of $7.2 billion in the third quarter from net purchases by
foreigners of $9.8 billion in the second.
Net purchases by foreigners of U.S. securities other than U.S. Treasury
securities were $138.8 billion in the third quarter, up from $127.3 billion in
the second. Transactions in U.S. stocks shifted to net purchases by foreigners
of $22.4 billion from net sales by foreigners of $1.4 billion. Net purchases
by foreigners of U.S. corporate bonds were $90.7 billion, down from $100.6
billion. Net purchases by foreigners of federally sponsored agency bonds were
$25.7 billion, down from $28.0 billion.
Foreign direct investment in the United States increased $44.1 billion
in the third quarter, following an increase of $45.8 billion in the second.
The small slowdown was largely attributable to a slowdown in net intercompany
debt investment in the United States. Net equity capital investment in the
United States also eased, and reinvested earnings decreased slightly.
Foreign official assets in the United States increased $80.8 billion in
the third quarter, following an increase of $75.9 billion in the second.
Net U.S. currency shipments to foreigners were virtually unchanged at
$1.1 billion in the third quarter.
The statistical discrepancy--errors and omissions in recorded
transactions--was a positive $49.7 billion in the third quarter, compared with
a positive $64.9 billion in the second.
In the third quarter, the U.S. dollar depreciated 1 percent on a trade-
weighted quarterly average basis against a group of 7 major currencies.
Revisions
The second-quarter international transactions are revised from
previously published estimates. The current-account deficit was revised to
$217.1 billion from $218.4 billion. The goods deficit was unrevised at $210.6
billion; the services surplus was revised to $17.5 billion from $16.8 billion;
the deficit on income was revised to $2.2 billion from $4.1 billion; and net
unilateral current transfers to foreigners were revised to $21.9 billion from
$20.4 billion. Net financial inflows were revised to $153.2 billion from
$154.1 billion.
* * *
Release dates in 2007:
Fourth quarter and year 2006.................March 14, 2007 (Wednesday)
First quarter 2007...............................June 15, 2007 (Friday)
Second quarter 2007.........................September 14, 2007 (Friday)
Third quarter 2007...........................December 17, 2007 (Monday)
* * *
Summary BEA estimates are available on recorded messages at the time
of public release at the following telephone numbers:
(202) 606-5306 Gross domestic product
-5303 Personal income and outlays
BEAs national, international, regional, and industry estimates; the
Survey of Current Business; and BEA news releases are available without charge
on BEAs Web site at www.bea.gov. By visiting the site, you can also subscribe
to receive free e-mail summaries of BEA releases and announcements.
December 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 II r III p II-III
Current account
1 Exports of goods and services and income receipts................................ 1,749,892 415,277 429,326 442,935 462,357 484,396 511,983 526,874 14,891
2 Exports of goods and services................................................. 1,275,245 306,580 316,645 320,853 331,165 344,430 355,945 366,083 10,138
3 Goods, balance of payments basis.......................................... 894,631 214,189 222,591 224,947 232,904 244,512 252,843 262,069 9,226
4 Services.................................................................. 380,614 92,391 94,054 95,906 98,261 99,918 103,102 104,014 912
5 Transfers under U.S. military agency sales contracts.................. 19,038 4,679 4,675 5,239 4,446 4,453 4,226 4,067 -159
6 Travel................................................................ 81,680 19,983 20,934 20,389 20,374 20,742 21,443 21,464 21
7 Passenger fares....................................................... 20,931 4,890 5,161 5,508 5,371 5,545 5,275 5,326 51
8 Other transportation.................................................. 42,245 10,103 10,353 10,545 11,244 11,588 12,202 12,216 14
9 Royalties and license fees............................................ 57,410 14,146 13,943 14,397 14,923 15,040 15,567 15,509 -58
10 Other private services................................................ 158,223 38,316 38,726 39,538 41,643 42,273 44,103 45,137 1,034
11 U.S. Government miscellaneous services................................ 1,087 274 262 291 260 277 286 295 9
12 Income receipts............................................................... 474,647 108,697 112,681 122,081 131,192 139,966 156,038 160,791 4,753
13 Income receipts on U.S.-owned assets abroad............................... 471,722 107,988 111,952 121,350 130,437 139,238 155,312 160,053 4,741
14 Direct investment receipts............................................ 251,370 58,846 60,572 64,476 67,481 68,738 74,923 75,912 989
15 Other private receipts................................................ 217,637 48,437 50,674 56,247 62,279 69,923 79,759 83,515 3,756
16 U.S. Government receipts.............................................. 2,715 705 706 627 677 577 630 626 -4
17 Compensation of employees................................................. 2,925 709 729 731 755 728 726 738 12
18 Imports of goods and services and income payments................................-2,455,328 -579,764 -599,390 -616,886 -659,290 -678,052 -707,254 -730,974 -23,720
19 Imports of goods and services.................................................-1,991,975 -474,688 -488,703 -502,645 -525,939 -535,570 -549,059 -566,401 -17,342
20 Goods, balance of payments basis..........................................-1,677,371 -397,457 -410,811 -423,693 -445,410 -452,481 -463,441 -480,681 -17,240
21 Services.................................................................. -314,604 -77,231 -77,892 -78,952 -80,529 -83,089 -85,618 -85,720 -102
22 Direct defense expenditures........................................... -30,062 -7,542 -7,478 -7,539 -7,503 -7,692 -7,740 -7,865 -125
23 Travel................................................................ -69,175 -17,270 -17,589 -17,181 -17,135 -17,634 -18,639 -18,136 503
24 Passenger fares....................................................... -26,066 -6,213 -6,555 -6,654 -6,644 -6,749 -6,948 -6,595 353
25 Other transportation.................................................. -62,107 -15,617 -15,135 -15,205 -16,150 -16,232 -16,377 -16,603 -226
26 Royalties and license fees............................................ -24,501 -5,880 -6,004 -6,356 -6,261 -6,741 -6,513 -6,383 130
27 Other private services................................................ -98,714 -23,699 -24,169 -25,001 -25,845 -27,045 -28,385 -29,119 -734
28 U.S. Government miscellaneous services................................ -3,979 -1,010 -962 -1,016 -991 -996 -1,016 -1,019 -3
29 Income payments............................................................... -463,353 -105,076 -110,687 -114,240 -133,351 -142,482 -158,195 -164,573 -6,378
30 Income payments on foreign-owned assets in the United States.............. -454,124 -102,817 -108,403 -111,887 -131,018 -140,132 -155,846 -162,217 -6,371
31 Direct investment payments............................................ -116,953 -28,490 -29,520 -24,105 -34,839 -34,443 -36,866 -40,106 -3,240
32 Other private payments................................................ -223,612 -48,786 -51,490 -58,479 -64,857 -72,813 -82,539 -84,801 -2,262
33 U.S. Government payments.............................................. -113,559 -25,541 -27,393 -29,303 -31,322 -32,876 -36,441 -37,310 -869
34 Compensation of employees................................................. -9,229 -2,259 -2,284 -2,353 -2,333 -2,350 -2,349 -2,356 -7
35 Unilateral current transfers, net................................................ -86,072 -27,237 -23,194 -9,464 -26,176 -19,542 -21,856 -21,450 406
36 U.S. Government grants........................................................ -31,362 -9,221 -5,780 -7,270 -9,091 -4,631 -5,341 -5,529 -188
37 U.S. Government pensions and other transfers.................................. -6,303 -1,558 -1,569 -1,584 -1,592 -1,742 -1,755 -1,710 45
38 Private remittances and other transfers....................................... -48,407 -16,458 -15,845 -610 -15,493 -13,169 -14,760 -14,211 549
December 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 II r III p II-III
Capital and financial account
Capital account
39 Capital account transactions, net................................................ -4,351 -2,691 -589 -557 -514 -1,756 -1,003 -551 452
Financial account
40 U.S.-owned assets abroad, net (increase/financial outflow (-))................... -426,801 -87,391 -196,376 -132,380 -10,656 -355,978 -211,375 -223,769 -12,394
41 U.S. official reserve assets, net............................................. 14,096 5,331 -797 4,766 4,796 513 -560 1,006 1,566
42 Gold...................................................................... .... .... .... .... .... .... .... .... ....
43 Special drawing rights.................................................... 4,511 1,713 -97 2,976 -81 -67 -51 -54 -3
44 Reserve position in the International Monetary Fund....................... 10,200 3,763 -564 1,951 5,050 729 -351 1,275 1,626
45 Foreign currencies........................................................ -615 -145 -136 -161 -173 -149 -158 -215 -57
46 U.S. Government assets, other than official reserve assets, net............... 5,539 2,591 989 1,501 459 1,049 1,765 287 -1,478
47 U.S. credits and other long-term assets................................... -2,255 -519 -708 -518 -509 -1,517 -376 -575 -199
48 Repayments on U.S. credits and other long-term assets..................... 5,603 1,083 1,586 1,957 977 2,558 2,147 871 -1,276
49 U.S. foreign currency holdings and U.S. short-term assets, net............ 2,191 2,027 111 62 -9 8 -6 -9 -3
50 U.S. private assets, net...................................................... -446,436 -95,313 -196,568 -138,647 -15,911 -357,540 -212,580 -225,062 -12,482
51 Direct investment......................................................... -9,072 -31,259 -33,957 30,342 25,799 -61,251 -46,769 -63,063 -16,294
52 Foreign securities........................................................ -180,125 -50,367 -45,702 -36,790 -47,266 -53,692 -53,915 -53,034 881
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 -31,199 -23,302 7,897
54 U.S. claims reported by U.S. banks, not included elsewhere................ -213,018 53,483 -174,153 -102,716 10,368 -196,407 -80,697 -85,663 -4,966
55 Foreign-owned assets in the United States, net (increase/financial inflow (+))... 1,212,250 224,128 346,179 388,592 253,350 527,498 364,576 400,161 35,585
56 Foreign official assets in the United States, net............................. 199,495 18,965 74,613 33,983 71,934 75,697 75,869 80,775 4,906
57 U.S. Government securities................................................ 156,450 33,007 36,313 25,926 61,204 66,219 21,553 80,137 58,584
58 U.S. Treasury securities.............................................. 71,749 9,226 16,892 8,213 37,418 42,156 -8,905 47,225 56,130
59 Other................................................................. 84,701 23,781 19,421 17,713 23,786 24,063 30,458 32,912 2,454
60 Other U.S. Government liabilities......................................... -488 -740 112 395 -255 37 724 1,073 349
61 U.S. liabilities reported by U.S. banks, not included elsewhere........... 24,275 -15,814 34,187 824 5,078 -821 42,241 -7,207 -49,448
62 Other foreign official assets............................................. 19,258 2,512 4,001 6,838 5,907 10,262 11,351 6,772 -4,579
63 Other foreign assets in the United States, net................................ 1,012,755 205,163 271,566 354,609 181,416 451,801 288,707 319,386 30,679
64 Direct investment......................................................... 109,754 30,539 8,245 44,459 26,510 45,268 45,843 44,090 -1,753
65 U.S. Treasury securities.................................................. 199,491 86,108 14,103 37,239 62,041 -5,212 9,784 -7,202 -16,986
66 U.S. securities other than U.S. Treasury securities....................... 474,140 77,412 111,808 153,049 131,871 186,009 127,285 138,757 11,472
67 U.S. currency............................................................. 19,416 1,072 4,507 4,679 9,158 1,932 1,127 1,129 2
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 25,082 53,496 28,414
69 U.S. liabilities reported by U.S. banks, not included elsewhere........... 179,849 -70,142 152,938 94,912 2,141 148,851 79,586 89,116 9,530
70 Statistical discrepancy (sum of above items with sign reversed).................. 10,410 57,678 44,044 -72,240 -19,071 43,434 64,929 49,709 -15,220
Memoranda:
71 Balance on goods (lines 3 and 20)................................................ -782,740 -183,268 -188,220 -198,746 -212,506 -207,969 -210,598 -218,612 -8,014
72 Balance on services (lines 4 and 21)............................................. 66,011 15,160 16,162 16,954 17,733 16,829 17,484 18,294 810
73 Balance on goods and services (lines 2 and 19)................................... -716,730 -168,108 -172,058 -181,792 -194,774 -191,140 -193,114 -200,318 -7,204
74 Balance on income (lines 12 and 29).............................................. 11,293 3,621 1,994 7,841 -2,159 -2,516 -2,157 -3,782 -1,625
75 Unilateral current transfers, net (line 35)...................................... -86,072 -27,237 -23,194 -9,464 -26,176 -19,542 -21,856 -21,450 406
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 -217,127 -225,550 -8,423
r Revised
p Preliminary
NOTE: Details may not add to totals because of rounding. Source: U.S. Bureau of Economic Analysis