News Release
These data have been superseded. Please see our latest releases for current estimates and contact information.
U.S. International Transactions, 1st quarter 2014 and Annual Revisions
Current Account
The U.S. current-account deficit—a net measure of transactions between the United States and the
rest of the world in goods, services, primary income (investment income and compensation), and
secondary income (current transfers)—increased to $111.2 billion (preliminary) in the first quarter
of 2014 from $87.3 billion (revised) in the fourth quarter of 2013. The deficit increased to 2.6
percent of current-dollar gross domestic product (GDP) from 2.0 percent in the fourth quarter.
The increase in the current-account deficit largely reflected an increase in the deficit on goods
and a decrease in the surplus on primary income. In addition, the deficit on secondary income
increased and the surplus on services decreased.
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Comprehensive Restructuring of the U.S. International Economic Accounts
With this release, the statistics of the U.S. International Transactions Accounts (ITAs) are
revised to reflect newly available and revised source data, changes in estimation methods, and
changes in definitions and classifications. The first quarter of 1999 is the earliest period
that is revised.
With this annual revision, BEA also introduces a new presentation of the ITAs as part of a
comprehensive restructuring of BEA’s international economic accounts. This change in presentation,
combined with changes in definitions and classifications, enhances the quality and usefulness
of the accounts for customers and brings the statistics into closer alignment with international
guidelines. Additional information on BEA’s comprehensive restructuring of the international
accounts is published in the March 2014 issue of the SURVEY OF CURRENT BUSINESS. An article
describing the revisions to the statistics will be published in the July 2014 issue of the SURVEY.
The June 30 release of the U.S. International Investment Position (IIP) Accounts will also reflect
restructured table presentations that are consistent with related ITA tables and revisions to
the IIP statistics that result from newly available and revised source data and changes in
definitions and classifications. For more information on the upcoming IIP revisions, see the
box on page 10.
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Goods and services
The deficit on goods and services increased to $126.8 billion in the first quarter from
$112.4 billion in the fourth.
Goods
The deficit on goods increased to $182.3 billion in the first quarter from $169.1 billion
in the fourth.
Goods exports decreased to $399.7 billion from $407.1 billion. Exports decreased in five
of the six major general-merchandise end-use categories. The largest decreases were in industrial
supplies and materials and in foods, feeds, and beverages. Most of the decrease in industrial
supplies and materials reflected a decrease in exports of petroleum and products, much of that
in fuel oil. The decrease in foods, feeds, and beverages was more than accounted for by a decrease
in exports of soybeans (ITA Table 2.1).
Goods imports increased to $582.0 billion from $576.2 billion. Imports increased in four
of the six major general-merchandise end-use categories. The largest increase was in industrial
supplies and materials, largely reflecting increases in petroleum and products, much of that in
crude oil, and in metals and nonmetallic products. The largest decrease was in automotive vehicles,
parts, and engines, a decrease more than accounted for by a decrease in passenger cars
(ITA Table 2.1).
Services
The surplus on services decreased to $55.5 billion in the first quarter from $56.6 billion
in the fourth.
Services exports decreased to $174.3 billion from $174.6 billion. Decreases in five of the
major services categories more than offset increases in the other four. Decreases in three major
categories—financial services, other business services, and government goods and services n.i.e.
(not included elsewhere)—were each larger than the overall decrease in services exports. The
decrease in financial services was more than accounted for by a decrease in financial management,
financial advisory, and custody services. The decrease in other business services was more than
accounted for by a decrease in technical, trade-related, and other business services n.i.e. These
decreases were mostly offset by an increase in travel (for all purposes including education),
primarily in other business travel (ITA Table 3.1).
Services imports increased to $118.8 billion from $117.9 billion. Five of the nine major
services categories increased. The increase in services imports was more than accounted for by
an increase in charges for the use of intellectual property n.i.e., reflecting payments for the
rights to broadcast the 2014 Winter Olympic Games (ITA Table 3.1).
Primary income
The surplus on primary income decreased to $46.7 billion in the first quarter from $54.6
billion in the fourth.
Investment income
Income receipts from foreigners on U.S. holdings of financial assets decreased to $196.5
billion from $198.8 billion. The decrease was more than accounted for by a decrease in direct
investment income receipts, particularly on receipts from holding company affiliates. The
decrease in direct investment income was partly offset by an increase in portfolio investment
income (ITA Table 4.1).
Income payments to foreigners on U.S. liabilities increased to $147.7 billion from $141.9
billion. The increase reflected increases in both portfolio and direct investment income payments.
For portfolio investment income, payments on equity, particularly by nonfinancial institutions,
accounted for much of the increase. For direct investment income, earnings of U.S. affiliates
in petroleum-related industries mostly accounted for the increase (ITA Table 4.1).
Compensation of employees
Receipts for compensation of U.S. residents paid by nonresidents remained at $1.7 billion
in the first quarter. Payments for compensation of foreign residents paid by U.S. residents
decreased to $3.8 billion from $4.0 billion.
Secondary income (current transfers)
The deficit on secondary income increased to $31.0 billion in the first quarter from $29.5
billion in the fourth. Secondary income receipts and payments include U.S. government and private
transfers, such as U.S. government grants and pensions, fines and penalties, withholding taxes,
personal transfers (remittances), insurance-related transfers, and other current transfers.
Secondary income receipts decreased to $31.1 billion from $31.9 billion, reflecting decreases
in receipts resulting from class action lawsuits (a component of private transfers) and from fines
and penalties (a component of U.S. government transfers) (ITA Table 5.1).
Secondary income payments increased to $62.1 billion from $61.4 billion, reflecting an
increase in U.S. government grants (ITA Table 5.1).
Capital Account
The capital-account deficit was $0.02 billion in the first quarter, up from a deficit near
zero in the fourth. The first-quarter deficit reflected capital transfer payments and other debits
arising from transactions between sports franchises for rights to negotiate with professional
athletes. There were no transactions recorded in capital transfer receipts and other credits
(ITA Table 1.1).
Financial Account
Net U.S. borrowing measured by financial-account transactions was $77.5 billion in the
first quarter; net U.S. incurrence of liabilities excluding financial derivatives was larger
than the combination of net U.S. acquisition of financial assets excluding financial derivatives
and net transactions in financial derivatives. Net borrowing was down from $143.5 billion in the
fourth quarter. Both the incurrence of liabilities and the acquisition of financial assets were
lower than in the fourth quarter, but the incurrence of liabilities fell more. Net transactions
of financial derivatives other than reserves were up from the fourth quarter.
Net U.S. acquisition of financial assets excluding financial derivatives
Net U.S. acquisition of financial assets excluding financial derivatives was $144.9 billion
in the first quarter, down from $195.5 billion in the fourth.
Direct investment assets (equity and debt instruments)
Net acquisition of direct investment assets was $60.2 billion in the first quarter, down
from $104.3 billion in the fourth. The decrease mostly reflected lower net equity investment than
in the fourth quarter, some of which was due to less reinvestment of earnings. Net acquisition
of (intercompany) debt instruments was also lower (ITA Table 6.1).
Portfolio investment assets (equity and investment fund shares and debt securities)
Net U.S. acquisition of portfolio investment assets abroad (acquisitions in excess of sales)
was $96.5 billion in the first quarter, down from $155.9 billion in the fourth. Net U.S. purchases
of foreign equity and investment fund shares declined to $82.6 billion from $95.4 billion. Net
U.S. purchases of foreign debt securities decreased to $13.8 billion from $60.4 billion, reflecting
decreases in net purchases of corporate bonds and notes and short-term negotiable certificates
of deposits (ITA Table 7.1).
Other investment assets (currency and deposits, loans, insurance technical reserves, and
trade credit and advances)
Net U.S. sales of other investment assets abroad (sales in excess of acquisitions) were
$10.8 billion in the first quarter, down from net sales of $62.0 billion in the fourth. The
decrease in net sales reflected a shift to net U.S.-resident provision of loans to foreigners
that more than offset an increase in net U.S.-resident withdrawals of deposits abroad and a
shift to net U.S.-resident repayment of trade credit and advances (ITA Table 8.1).
Reserve assets
The net decrease of U.S. reserve assets abroad was $1.0 billion in the first quarter, down
from $2.8 billion in the fourth. The first-quarter net decrease represents repayments of International
Monetary Fund lending in dollars to other countries, which reduced the U.S. reserve position in
the International Monetary Fund.
Net U.S. incurrence of liabilities excluding financial derivatives
Net U.S. incurrence of liabilities to foreigners excluding financial derivatives was $229.8
billion in the first quarter, down from $341.8 billion in the fourth.
Direct investment liabilities (equity and debt instruments)
Net repayment of direct investment liabilities to foreigners was $112.3 billion in the
first quarter, a shift from net incurrence of liabilities of $97.2 billion in the fourth. Net
repayment of direct investment liabilities is an atypical occurrence; this was the second such
instance since the start of this series, the first quarter of 1982. The repayment primarily
reflected equity disinvestment other than reinvestment of earnings. In addition, transactions
in intercompany debt liabilities shifted from net incurrence to net repayment (ITA Table 6.1).
Portfolio investment liabilities (equity and investment fund shares and debt securities)
Net U.S. incurrence of portfolio investment liabilities to foreigners was $235.6 billion
in the first quarter, up from $153.2 billion in the fourth. Net foreign purchases of U.S. equity
and investment fund shares were $93.4 billion, a shift from net foreign sales of $92.0 billion.
Net foreign purchases of U.S. debt securities were $142.1 billion, down from $245.2 billion,
primarily reflecting decreases in net foreign purchases of long-term U.S. Treasury securities
and U.S. Treasury bills and certificates (ITA Table 7.1).
Other investment liabilities (currency and deposits, loans, insurance technical reserves,
and trade credit and advances)
Net U.S. incurrence of other investment liabilities to foreigners was $106.6 billion in
the first quarter, up from $91.5 billion in the fourth. The first-quarter increase resulted from
combined changes in transactions for loans, currency, and trade credit and advances that more
than offset a shift to net foreign-resident withdrawals of deposits. For loans, first-quarter
net foreign provision (foreign provision of loans exceeding U.S.-resident repayment) rose. Increases
of net shipments of U.S. currency to foreigners and provision of trade credit and advances also
contributed to the higher first-quarter net incurrence of other investment liabilities
(ITA Table 8.1).
Financial derivatives other than reserves
Net transactions in financial derivatives were $7.5 billion in the first quarter after net
transactions of $2.9 billion in the fourth. Transactions in financial derivatives are only available
as a net value equal to transactions for assets less transactions for liabilities. A positive
value represents net U.S. residents’ cash payments to foreign residents from settlements of
derivatives contracts and a negative value represents net U.S. cash receipts.
* * *
The statistical discrepancy—the difference between total debits and total credits recorded
in the current, capital, and financial accounts—can be calculated as the difference between net
lending or net borrowing as measured in the financial account and as measured in the current and
capital accounts. The statistical discrepancy was $33.7 billion in the first quarter compared
with –$56.1 billion in the fourth.
In the first quarter, the U.S. dollar appreciated 1.5 percent on a trade-weighted quarterly
average basis against a group of 7 major currencies, after depreciating 1.0 percent in the fourth
quarter. Exchange rate data are based on Federal Reserve Statistical Release H.10.
Revisions
The statistics of the U.S. International Transactions Accounts (ITAs) released today have been
revised for the first quarter of 1999 to the fourth quarter of 2013 to incorporate newly available
and revised source data, updated seasonal adjustments, changes in definitions and classifications,
and improved estimation methodologies. In addition, new table presentations of the ITAs reflecting
a comprehensive restructuring of the accounts are available on the BEA Web site. The previous table
presentations are also available. See the box on the first page of this release for more
information about the comprehensive restructuring of the international accounts.
The revisions to the current-account balance, except for 2012 and 2013, mostly reflect
refinements in the methodology for estimating travel services exports and imports and revised
source data on air passenger transport imports (previously named passenger fare imports). Revisions
to the current-account balance also reflect newly available and revised BEA survey data on
international services and direct investment income transactions, and revised data on portfolio
investment that resulted in revisions to portfolio income statistics. The revisions to portfolio
income statistics and to financial-account statistics mostly reflect newly available information
from three Treasury International Capital (TIC) surveys conducted by the Federal Reserve Board
and the U.S. Department of the Treasury: Aggregate Holdings of Long-Term Securities by U.S. and
Foreign Residents (SLT), the Benchmark Survey of U.S. Ownership of Foreign Securities at end-
December 2012, and the Annual Survey of Foreign Portfolio Holdings of U.S. Securities at end-
June 2013.
Key changes introduced in this annual revision are summarized below.
Changes in presentation, definition, and classification
* The new presentation eliminates the balance of payments sign convention that used negative
signs for debit entries. The presentation now uses positive signs to show exports and
imports, income receipts and payments, transfers made and received, and acquisitions of
assets and incurrences of liabilities. Negative signs specify negative income (losses)
and net sales of assets or net repayment of liabilities. Current-account and capital-
account balances indicate the difference between underlying gross credit and debit flows
(for example, exports less imports). For the financial account, net lending or net borrowing
is calculated as the difference between the net acquisition of financial assets excluding
financial derivatives and the net incurrence of liabilities excluding financial derivatives
plus net transactions in financial derivatives.
* The new presentation expands the use of gross reporting, primarily of statistics on secondary
income (current transfers), capital-account transactions, and direct investment income and
financial flows. Under gross recording of transactions, the underlying flows are shown at
their full credit or debit values rather than as the net of credits and debits.
* Net exports of goods under merchanting are reclassified from services to goods. These net
exports reflect the net value of goods that are purchased and subsequently sold abroad
without entering the United States.
* Goods exports and imports are now categorized into three major aggregates: general merchandise,
net exports of goods under merchanting (exports only), and nonmonetary gold. In the table
presenting U.S. trade in goods (ITA Table 2.1), end-use commodity detail (under general
merchandise) is expanded from 59 to 77 categories for exports and from 56 to 69 categories
for imports.
* Services categories are changed with the number of major categories increasing from seven
to nine. The new categories are: maintenance and repair services n.i.e. (not included
elsewhere); transport; travel (for all purposes including education); insurance services;
financial services; charges for the use of intellectual property n.i.e.; telecommunications,
computer, and information services; other business services; and government goods and
services n.i.e.
o The table presenting U.S. trade in services (ITA Table 3.1) now includes all services
categories, whereas the previous services table excluded transactions by the U.S.
military and other government agencies. Transfers under U.S. military agency sales
contracts (for exports), direct defense expenditures (for imports), and U.S. government
miscellaneous services (for exports and imports) are now part of government goods and
services n.i.e.
o The category other transportation is renamed transport and now includes passenger fares.
Passenger fares are now shown separately as air passenger transport services in ITA
Table 3.1.
o The definition of travel is broadened to include health-related and education-related
travel along with the expenditures on goods and services by border, seasonal, and other
short-term workers, all of which were previously included in other private services.
To distinguish travel from the previous measure, the new measure is named travel (for
all purposes including education). In ITA Table 3.1, the previous measure of travel
can be derived as the sum of other personal travel and other business travel.
o Maintenance and repair services n.i.e., financial services, and insurance services,
all of which were previously included in other private services, are now shown as
separate categories. Other business services, which consists of the remaining components
of other private services, is classified into three categories: research and development
services, professional and management consulting services, and technical, trade-related,
and other business services.
* Quarterly statistics for goods and services exports and imports are presented on a seasonally
adjusted basis for selected major trading partner countries and areas in two new tables
(ITA Tables 2.2 and 3.2).
* Primary income, which includes investment income and compensation of employees, replaces
the previous category of income.
* Transactions in primary investment income are classified into four functional categories:
direct investment, portfolio investment, other investment, and reserve assets (receipts
only). The functional categories differ by the motivation behind the investment and the
relationship between the parties to the transactions.
o Direct investment income is now featured on a gross basis according to whether the
income is derived from an asset or a liability. In the previous presentation, direct
investment income was featured on a directional basis by whether the direct investment
was outward or inward, that is, whether the investor was a domestic resident or a
foreign resident. The directional basis is still available in ITA Table 4.2 and is
the basis used for the country and area statistics in ITA Table 1.3.
o Investment income receipts on portfolio investment includes dividend and income receipts
from the previous category of other private receipts.
o Investment income payments on portfolio investment includes dividend payments from the
previous category of other private payments and interest payments from the previous
categories of other private payments and U.S. government payments.
o Investment income receipts on other investment includes interest receipts from the
previous income categories of other private receipts and U.S. government receipts.
o Investment income payments on other investment includes interest payments from the
previous income categories of other private payments and U.S. government payments.
o Investment income on reserve assets includes interest receipts from the previous
category of U.S. government receipts.
* Secondary income (current transfer) receipts and payments replace the previous net measure
of unilateral current transfers. Secondary income transactions include, for example, U.S.
government and private transfers, such as U.S. government grants and pensions, fines and
penalties, withholding taxes, personal transfers (remittances), insurance-related transfers,
and other current transfers.
* Capital-account transactions are now presented on a gross basis rather than on a net basis.
* The presentation of the financial account is significantly restructured. The two major
categories of transactions are renamed. Net U.S. acquisition of financial assets excluding
financial derivatives replaces U.S.-owned assets abroad excluding financial derivatives,
and net U.S. incurrence of liabilities excluding financial derivatives replaces foreign-
owned assets in the United States excluding financial derivatives.
* Financial-account transactions are classified into five functional categories: direct
investment, portfolio investment, other investment, reserve assets (assets only), and
financial derivatives.
o Direct investment is now presented on a gross basis by whether the investment reflects
an asset or a liability. In the previous presentation, direct investment was classified
on a directional basis by whether the direct investment was outward or inward, that
is, whether the investor was a domestic resident or a foreign resident. The directional
basis is still available in ITA Table 6.1 and is the basis used for the country and
area statistics in ITA Table 1.3.
o Net acquisition of portfolio investment assets (equity and debt securities issued by
foreign residents) includes transactions from the previous category of U.S. private
assets.
o Net acquisition of other investment assets (currencies, deposits, loans, and trade
credit and advances that are debts of foreign residents to U.S. residents) includes
transactions from the previous categories of U.S. government assets, other than official
reserve assets, and U.S. private assets.
o Net incurrence of portfolio investment liabilities (equity and debt securities issued
by U.S. residents) includes transactions from the previous categories of foreign official
assets in the United States and other foreign assets in the United States.
o Net incurrence of other investment liabilities (currencies, deposits, loans, and trade
credit and advances that are debts of U.S. residents to foreign residents) includes
transactions from the previous categories of foreign official assets in the United
States and other foreign assets in the United States.
* Financial-account transactions are classified by instrument (e.g., equity, debt securities,
loans) within each functional category in the new presentation.
* The sectors associated with financial-account transactions—central bank, deposit-taking
corporations except the central bank, general government, and other sectors—and maturity
of the instruments involved in these transactions—short-term and long-term—are also provided
in the new presentation.
Newly available and revised source data and changes in estimation methodology
* Goods exports and imports are revised for 2009-2013 to reflect revised Census Bureau data
on goods exports and imports on a Census basis and revised balance of payments adjustments.
* Services exports and imports are revised for 2011-2013, and services exports are also
revised for 2006-2008, to reflect newly available and revised data from BEA’s quarterly
services surveys.
* Travel services exports and imports are revised for 1999-2013 to implement an improved
methodology for estimating average expenditures by travelers.
* Travel services imports and air passenger transport services (previously passenger fares)
are revised for 1999-2013 to reflect revised data from the U.S. Department of Homeland
Security on the number of U.S. travelers abroad and to reflect an improved methodology
for measuring travel expenditures by country of destination.
* Secondary income (current transfers) receipts are revised for 1999-2013 to incorporate
source data on receipts from foreign residents for contributing to military operations.
* Financial transactions and primary income related to direct investment are revised for
2011-2013 to incorporate newly available and revised data from BEA’s quarterly and annual
direct investment surveys.
* Financial transactions and primary income related to portfolio investment are revised for
2011-2013 to incorporate newly available and revised data from the U.S. Department of the
Treasury. The data on long-term securities are from the TIC survey Aggregate Holdings of
Long-Term Securities by U.S. and Foreign Residents (SLT).
* Financial transactions and primary income related to other investment are revised for
2009-2013 to incorporate revisions from several sources.
o Revisions for 2011-2013 incorporate newly available and revised data from these TIC
surveys:
* Reports by Financial Institutions of Liabilities to, and Claims on, Foreign Residents
by U.S. Residents (BC, BL-1, BL-2 BQ-1, and BQ-2), covering debt claims and
liabilities, excluding long-term debt securities.
* Reports of Liabilities to, and Claims on, Unaffiliated Foreign Residents by U.S.
Resident Non-Financial Institutions (CQ-1 and CQ-2), covering debt claims and
liabilities, excluding long-term debt securities.
o Revisions for 2011-2013 also incorporate newly available and revised data on transactions
of U.S. financial intermediaries with foreign financial intermediaries from BEA’s
quarterly and annual direct investment surveys that are reclassified from direct investment
to other investment.
o Revisions for 2009-2013 incorporate newly available and revised U.S. government
administrative data.
* Financial transactions in financial derivatives are revised for 2013 to incorporate newly
available and revised data from the TIC survey Report of Holdings of and Transactions in
Financial Derivatives Contracts (D).
Additional information on the revisions to the U.S. International Transactions Accounts
and the U.S. International Investment Position Accounts will be provided in the July issue of
the SURVEY OF CURRENT BUSINESS.
Revisions to fourth quarter 2013
The current-account deficit in the fourth quarter of 2013 is revised upward to $87.3
billion from $81.1 billion. The goods deficit is revised downward to $169.1 billion from $171.8
billion. The services surplus is revised downward to $56.6 billion from $57.9 billion. The primary
income surplus (previously income surplus) is revised downward to $54.6 billion from $64.4 billion.
The secondary income deficit (previously net outflows of unilateral current transfers) is revised
downward to $29.5 billion from $31.6 billion. Fourth-quarter net borrowing from financial-account
transactions (previously net financial inflows) is revised downward to $143.5 billion from $173.7
billion. Net U.S. acquisition of financial assets excluding financial derivatives (previously
net outflows of U.S.-owned assets abroad) is revised upward to $195.5 billion from $148.6 billion,
and net U.S. incurrence of liabilities excluding financial derivatives (previously net inflows
of foreign-owned assets in the United States) is revised upward to $341.8 billion from $325.0
billion.
* * *
Release dates in 2014:
Fourth Quarter and Year 2013.................................March 19, 2014 (Wednesday)
First Quarter 2014 and Annual Revisions.......................June 18, 2014 (Wednesday)
Second Quarter 2014......................................September 17, 2014 (Wednesday)
Third Quarter 2014........................................December 17, 2014 (Wednesday)
* * *
BEA’s national, international, regional, and industry statistics; the SURVEY OF CURRENT
BUSINESS; and BEA news releases are available without charge on BEA’s Web site at (www.bea.gov).
By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases
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On June 30, BEA will introduce a new presentation of the U.S. International Investment Position
(IIP) Accounts as part of the comprehensive restructuring of BEA’s international economic accounts.
The June 30 release will include preliminary statistics of the IIP Accounts for the first quarter
of 2014 and revised statistics for 2009-2013, including revised detailed annual statistics for
2009-2013 that present changes in positions resulting from financial transactions and valuation
changes such as price, exchange-rate, and other changes. The release will also include a brief
discussion of revisions to the IIP Accounts. A more detailed discussion of the IIP Accounts and
the revisions to those accounts will appear in an article in the July issue of the SURVEY OF
CURRENT BUSINESS.
NOTE: This news release is available on BEA's Web site 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 first-quarter
statistics in this release are preliminary and will be revised on September 17, 2014. All links
in the text of this release—including archived versions of this release—refer to the latest
available statistics.