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      The U.S. current-account deficitthe combined balances on trade in goods and services,
income, and net unilateral current transfersdecreased to $107.5 billion (preliminary) in the
third quarter from $118.1 billion (revised) in the second quarter. The decrease in the current-
account deficit was more than accounted for by a decrease in the deficit on goods. Changes in
the other balances were relatively small.

Goods and services

      The deficit on goods and services decreased to $124.5 billion in the third quarter from
$137.4 billion in the second.

      Goods

      The deficit on goods decreased to $173.9 billion in the third quarter from $185.7 billion
in the second.

      Goods exports decreased to $393.4 billion from $394.1 billion. Decreases in three of the
six major end-use categories were mostly offset by increases in the other three categories. The
largest decrease was in industrial supplies and materials, which reflected decreases in nonferrous
metals, in chemicals, and in petroleum and products. The major end-use categories with the largest
increases were foods, feeds, and beverages and capital goods. The increase in foods, feeds, and
beverages was largely due to an increase in soybeans, and the increase in capital goods was more
than accounted for by an increase in completed civilian aircraft (Table 2a).

      Goods imports decreased to $567.3 billion from $579.9 billion. Four of the six major end-
use categories decreased. The largest decreases were in industrial supplies and materials and
in capital goods. The decrease in industrial supplies and materials was more than accounted for
by a decrease in petroleum and products. The decrease in capital goods was more than accounted
for by a decrease in machinery and equipment, which was mostly due to a decrease in computers,
peripherals, and parts. Changes in the other major categories were relatively small (Table 2a).

      Services

      The surplus on services increased to $49.4 billion in the third quarter from $48.3 billion
in the second.

      Services receipts increased to $159.1 billion from $157.6 billion. Five of the seven major
services categories increased. The largest increase was in other private services, which includes
items such as financial services, insurance services, and business, professional, and technical
services.

      Services payments increased to $109.7 billion from $109.2 billion. Four of the seven major
services categories increased. The largest increase was in royalties and license fees, which
included payments for the rights to broadcast the Summer Olympic Games in July and August.

Income

      The surplus on income decreased to $50.8 billion in the third quarter from $52.1 billion
in the second.

      Investment income

      Income receipts on U.S.-owned assets abroad increased to $182.9 billion from $182.5 billion.
The increase was more than accounted for by an increase in direct investment receipts.  Other
private receipts, which consists of interest and dividends, decreased.

      Income payments on foreign-owned assets in the United States increased to $130.2 billion
from $128.5 billion. The increase was more than accounted for by an increase in direct investment
payments.  Other private payments decreased.

      Compensation of employees

      Receipts for compensation of U.S. residents paid by nonresidents remained at $1.5 billion
in the third quarter.Payments for compensation of foreign residents paid by U.S. residents
remained at $3.4 billion.

Unilateral current transfers

      Net unilateral current transfers to foreigners were $33.8 billion in the third quarter, up
from $32.7 billion in the second. The increase was mostly due to an increase in the category of
private remittances and other transfers.  Examples of these transactions include U.S. immigrants
remittances to households abroad, taxes withheld on international transactions, U.S. charitable
donations to foreign residents, and transfers between U.S. and foreign insurance companies.

                                        Capital Account

      Net capital-account transactions are not available for the third quarter because source
data are not yet available.  Net payments were $0.3 billion in the second quarter, which was
accounted for by capital transfers resulting from the forgiveness of debt owed to the U.S.
government by foreign governments.

                                       Financial Account

      Net financial inflows were $45.8 billion in the third quarter, down from $105.0 billion
in the second. Both U.S.-owned assets abroad and foreign-owned assets in the United States
increased in the third quarter after decreasing in the second. The slowing of net financial
inflows in the third quarter was primarily the result of a greater change in flows from the
second quarter for U.S.-owned assets abroad than for foreign-owned assets in the United States.

U.S.-owned assets abroad

      U.S.-owned assets abroad increased $229.8 billion in the third quarter after decreasing
$248.2 billion in the second.

      U.S. claims on foreigners reported by U.S. banks and securities brokers increased $144.0
billion in the third quarter after decreasing $267.0 billion in the second. Examples of these
claims are U.S. banks deposits at foreign banks and U.S. banks loans to foreigners.  The third-
quarter increase was due to increases in claims for both customers accounts and banks own
accounts (Table 10a).

      U.S. sales of foreign securities exceeded purchases (net sales) by $2.2 billion in the
third quarter after net sales of $6.5 billion in the second. Net sales of foreign stocks were
$2.1 billion, a shift from net purchases of $21.0 billion in the second quarter. Net sales of
foreign bonds were $0.1 billion, down from $27.5 billion in net sales in the second quarter
(Table 8a).

      U.S. direct investment abroad was $101.4 billion in the third quarter, up from $63.3 billion
in the second. The increase was mostly accounted for by a shift of intercompany debt investment
to net outflows in the third quarter from net inflows in the second quarter (Table 7a).

      U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns decreased $0.2
billion in the third quarter after decreasing $24.6 billion in the second.

      U.S. official reserve assets increased $0.8 billion in the third quarter after increasing
$3.3 billion in the second.  The third-quarter increase reflected an increase in the U.S. reserve
position in the International Monetary Fund (IMF) associated with U.S. loans to the IMF under
New Arrangements to Borrow.

      U.S. government assets other than official reserve assets decreased $14.2 billion in the
third quarter after decreasing $16.7 billion in the second.  The decreases in both quarters
reflected reductions of central bank liquidity swaps between the U.S. Federal Reserve System
and foreign central banks.

Foreign-owned assets in the United States

      Foreign-owned assets in the United States increased $282.0 billion in the third quarter
after decreasing $143.6 billion in the second.

      U.S. liabilities to foreigners reported by U.S. banks and securities brokers, other than
those recorded under foreign official assets, increased $11.8 billion in the third quarter after
decreasing $214.4 billion in the second.  Examples of these liabilities are deposits of foreign
residents at banks in the United States and loans by banks abroad to banks in the United States
(Table 11a).

      Foreign private purchases of U.S. Treasury securities exceeded sales by $47.9 billion in
the third quarter, an increase from second-quarter net purchases of $6.0 billion. The increase
from the second quarter reflected a shift from foreign net sales of U.S. Treasury bills to net
purchases (Table 8a and Table 11a).

      Foreign private purchases of U.S. securities other than U.S. Treasury securities exceeded
sales by $47.7 billion in the third quarter, a shift from foreign net sales of $43.1 billion in
the second. Net purchases of U.S. stocks were $37.4 billion, shifting from net sales of $8.5
billion in the second quarter. Net sales of U.S. corporate bonds decreased to $6.1 billion from
$38.2 billion in the second quarter. Net purchases of U.S. federally sponsored agency bonds
increased to $16.4 billion from $3.6 billion in the second quarter (Table 8a).

      Foreign direct investment in the United States was $34.2 billion in the third quarter,
down from $48.0 billion in the second. The decrease was more than accounted for by lower net
inflows of intercompany debt investment; equity investment was also lower. These decreases were
partly offset by an increase in reinvested earnings in the third quarter (Table 7a).

      U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns decreased
$6.0 billion in the third quarter after decreasing $27.0 billion in the second.

      Foreign official assets in the United States increased $130.3 billion in the third quarter
after increasing $79.8 billion in the second.  The third-quarter increase was mostly due to net
purchases of U.S. Treasury securities.

      Net shipments of U.S. currency to foreign countries were $16.2 billion in the third quarter,
up from $7.1 billion in the second.

Financial derivatives

      Net outflows of financial derivatives were $6.4 billion in the third quarter after net
inflows of $0.5 billion in the second.


      The statistical discrepancythe amount that balances the sum of the recorded credits and
debits across all the accounts in the international transactions accountswas $61.7 billion in
the third quarter compared with $13.4 billion in the second.

      In the third quarter, the U.S. dollar appreciated 0.1 percent on a trade-weighted quarterly
average basis against a group of 7 major currencies.  In the second quarter, the U.S. dollar
appreciated 1.5 percent on the same basis.  Exchange rate data are based on Federal Reserve
Statistical Release H.10.

                                         Revisions

      The second-quarter 2012 international transactions are revised from previously published
statistics. The current-account deficit was revised upward to $118.1 billion from $117.4 billion.
The goods deficit was revised downward to $185.7 billion from $185.8 billion. The services surplus
was revised upward to $48.3 billion from $46.5 billion. The income surplus was revised downward
to $52.1 billion from $55.5 billion. Net outflows of unilateral current transfers were revised
downward to $32.7 billion from $33.6 billion. Net financial inflows were revised upward to $105.0
billion from $88.5 billion.

                                   *          *          *

      Release dates in 2013:

      Fourth quarter and year 2012....................................March 14, 2013 (Thursday)
      First quarter 2013.................................................June 14, 2013 (Friday)
      Second quarter 2013.........................................September 19, 2013 (Thursday)
      Third quarter 2013............................................December 17, 2013 (Tuesday)

                                   *          *          *

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BUSINESS; and BEA news releases are available without charge on BEAs Web site at (www.bea.gov).
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NOTE: This news release is available on BEAs Web site (www.bea.gov) along with Highlights
related to this release, the latest detailed statistics for U.S. international transactions, and a 
description of the estimation methods used to compile them.  The third-quarter
statistics in this release are preliminary and will be revised on March 14, 2013. All links in
the text of this releaseincluding archived versions of this releaserefer to the latest available
revised statistics.