News Release: U.S. International TransactionsNOTE: See the navigation bar at the right side of the news release text for links to data tables, contact personnel and their telephone numbers, and supplementary materials.
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, Tuesday, September 19, 2017
|Michelle Murillo:||(301) 278-9133||(Technical)||Michelle.Murillo@bea.gov|
|Jeannine Aversa:||(301) 278-9003||(Media)||Jeannine.Aversa@bea.gov|
U.S. International Transactions: Second Quarter 2017
Current-Account Balance The U.S. current-account deficit increased to $123.1 billion (preliminary) in the second quarter of 2017 from $113.5 billion (revised) in the first quarter of 2017, according to statistics released by the Bureau of Economic Analysis (BEA). The deficit increased to 2.6 percent of current-dollar gross domestic product (GDP) from 2.4 percent in the first quarter. The $9.6 billion increase in the current-account deficit reflected a $7.5 billion increase in the deficit on secondary income, a $2.9 billion decrease in the surplus on primary income, and a $0.8 billion increase in the deficit on goods. These changes were partly offset by a $1.6 billion increase in the surplus on services. The remainder of this release highlights changes from the first quarter to the second quarter in major aggregates of the U.S. international transactions accounts, selected component contributions to those changes, and updates to previously published statistics for the first quarter. Current-Account Transactions (tables 1-5) Exports of goods and services and income receipts Exports of goods and services and income receipts increased $2.2 billion in the second quarter to $836.8 billion. * Primary income receipts increased $4.8 billion to $224.1 billion, mostly reflecting increases in portfolio investment income and in other investment income. * Services exports increased $3.2 billion to $195.8 billion, mostly reflecting increases in travel (for all purposes including education) and in financial services. * Secondary income receipts decreased $5.2 billion to $33.9 billion, partly offsetting the increases in primary income receipts and services exports. The decrease in secondary income receipts mostly reflected a decrease in U.S. government transfers, primarily fines and penalties. Imports of goods and services and income payments Imports of goods and services and income payments increased $11.8 billion to $959.9 billion. * Primary income payments increased $7.6 billion to $176.9 billion, reflecting increases in direct, portfolio, and other investment income. * Secondary income payments increased $2.4 billion to $66.9 billion, mostly reflecting an increase in private transfers, primarily fines and penalties. * Services imports increased $1.6 billion to $131.8 billion, led by an increase in travel (for all purposes including education). Financial Account (tables 1, 6, 7, and 8) Net U.S. borrowing measured by financial-account transactions was $112.5 billion in the second quarter of 2017, an increase from net borrowing of $93.5 billion in the first quarter. The increase reflected an increase in net U.S. incurrence of liabilities excluding financial derivatives that was partly offset by an increase in net U.S. acquisition of financial assets excluding financial derivatives and a shift to net lending from net borrowing in financial derivatives other than reserves. Financial assets Net U.S. acquisition of financial assets excluding financial derivatives increased $24.6 billion in the second quarter to $350.7 billion. * Net U.S. acquisition of portfolio investment assets increased $41.3 billion to $181.7 billion, reflecting an increase in net U.S. purchases of equity and investment fund shares. * Net U.S. acquisition of direct investment assets decreased $17.9 billion to $99.5 billion, partly offsetting the increase in net acquisition of portfolio investment assets. The decrease in net acquisition of direct investment assets mostly reflected a decrease in net acquisition of debt instruments by U.S. parent companies from their foreign affiliates. Liabilities Net U.S. incurrence of liabilities excluding financial derivatives increased $55.2 billion to $472.5 billion. * Net U.S. incurrence of portfolio investment liabilities increased $143.0 billion to $307.5 billion, reflecting an increase in net foreign purchases of U.S. debt securities. * Net U.S. incurrence of other investment liabilities decreased $71.6 billion to $84.0 billion, partly offsetting the increase in net incurrence of portfolio investment liabilities. The decrease reflected a shift to net U.S. repayment of loans from first- quarter net incurrence. Financial derivatives Transactions in financial derivatives other than reserves reflected second-quarter net lending of $9.3 billion, a shift from first-quarter net borrowing of $2.3 billion. Statistical Discrepancy (table 1) The statistical discrepancy decreased $9.4 billion in the second quarter to $10.6 billion. Updates to First Quarter 2017 International Transactions Accounts Aggregates Billions of dollars, seasonally adjusted Preliminary estimate Revised estimate Current-account balance -116.8 -113.5 Goods balance -200.3 -200.6 Services balance 61.3 62.5 Primary-income balance 47.7 50.1 Secondary-income balance -25.5 -25.5 Net lending (+)/borrowing (-) from financial-account transactions -115.3 -93.5 Statistical discrepancy 1.5 20.0 Next release: December 19, 2017 at 8:30 A.M. EST U.S. International Transactions, Third Quarter 2017 _______________________________________________________________________________________________ Additional Information Resources * Stay informed about BEA developments by reading the BEA blog, signing up for BEA’s email subscription service, or following BEA on Twitter @BEA_News. * Historical time series for these estimates can be accessed in BEA’s Interactive Data Application. * Access BEA data by registering for BEA’s Data Application Programming Interface (API). * For more on BEA’s statistics, see our monthly online journal, the Survey of Current Business. * BEA's news release schedule. * More information on these international transactions statistics will be provided next month in the Survey of Current Business. * More information on the international transactions accounts (ITAs) and a description of the estimation methods used to compile them is provided in U.S. International Economic Accounts: Concepts and Methods. Definitions The current account consists of transactions between U.S. residents and nonresidents in goods, services, primary income, and secondary income. Goods are physical items with ownership rights that can be exchanged among institutional units through transactions. Services transactions consist of transactions arising from productive activities that change the condition of the consumer or that facilitate the exchange of products and financial assets. Primary income transactions include investment income and compensation of employees. Investment income is the return on holdings of financial assets and includes direct investment income, portfolio investment income, other investment income, and income on reserve assets. Compensation of employees is income for the contribution of labor inputs to the production process. Secondary income consists of current transfers between residents and nonresidents. Unlike an exchange, a transfer is a transaction in which a good, service, or asset is provided without a corresponding return of economic value. 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. The capital account consists of capital transfers between residents and nonresidents and the cross-border acquisition and disposal of nonproduced nonfinancial assets. Capital transfers include debt forgiveness and certain disaster-related nonlife insurance claims. Nonproduced nonfinancial assets include natural resources and contracts, leases, and licenses. Capital- account transactions are distinguished from current-account transactions in that capital- account transactions result in a change in the assets of one or both parties to the transaction without affecting the income or savings of either party. The financial account consists of transactions between U.S. residents and nonresidents for direct investment, portfolio investment, other investment, reserves, and financial derivatives other than reserves. Direct investment is a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise resident in another economy. Ownership or control of 10 percent or more of the nonresident entity’s voting securities is the threshold for separating direct investment from other types of investment. Direct-investment transactions include transactions in equity (including reinvestment of earnings) and debt instruments. Portfolio investment transactions consist of cross-border transactions involving equity and investment fund shares and debt securities, excluding those included in direct investment or reserve assets. Other investment is a residual category that includes cross-border financial instruments other than those included in direct investment, portfolio investment, financial derivatives, and reserve assets. Other-investment transactions consist of transactions in currency and deposits, loans, insurance technical reserves, trade credit and advances, and, for liabilities, special drawing rights allocations. Reserve assets are those external assets that are readily available to and controlled by monetary authorities for meeting balance of payments financing needs, for intervention in exchange markets to affect the currency exchange rate, and for other related purposes such as maintaining confidence in the currency and the economy and serving as a basis for foreign borrowing. The major published components are monetary gold, International Monetary Fund (IMF) special drawing rights (SDRs), reserve position in the IMF, and other reserve assets. Financial derivatives other than reserves consist of financial contracts that are linked to underlying financial instruments, commodities, or indicators. Transactions in financial derivatives consist of U.S. cash receipts and payments arising from the sale, purchase, periodic settlement, or final settlement of financial derivatives contracts. 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 cash payments by U.S. residents to foreign residents from settlements of derivatives contracts (net lending) and a negative value represents net U.S. cash receipts (net borrowing). The statistical discrepancy is the difference between net acquisition of assets and net incurrence of liabilities in the financial account (including financial derivatives) less the difference between total credits and total debits recorded in the current and capital accounts. The statistical discrepancy can also be calculated as the difference between net lending (borrowing) measured from financial-account transactions and net lending (borrowing) measured from current- and capital-account transactions. The current-account balance is the difference between credits (exports and income receipts) and debits (imports and income payments) in the current account. The balance is a net measure of current-account transactions between the United States and the rest of the world. A positive balance indicates a current-account surplus. A negative balance indicates a current-account deficit. Net lending (borrowing) measures the balance of funds supplied to the rest of the world. Net lending means that, in net terms, the U.S. economy supplies funds to the rest of the world. Net borrowing means the opposite. Net lending (borrowing) can be measured by current- and capital-account transactions or by financial-account transactions. Conceptually, the two measures are equal. In practice, the two measures differ by the statistical discrepancy. Release and update cycle Preliminary quarterly statistics for the ITAs are released in March, June, September, and December approximately 80 days after the end of the reference quarter. These statistics are updated the following quarter to incorporate new source data. Quarterly statistics are open for revision for at least the prior three years in annual updates released in June. Preliminary annual statistics are released in March along with statistics for the fourth quarter of the previous year. These annual statistics are open for revision for at least the prior three years in subsequent annual updates. Related statistics The ITAs constitute one part of a broader set of U.S. international economic accounts that, taken together, provide a comprehensive, integrated, and detailed picture of U.S. international economic activities. The international investment position (IIP) accounts are released quarterly. Financial transactions that are reported in the ITAs are one type of change in position recorded in the IIP accounts. Statistics on direct investment and multinational enterprises (MNEs) include annual statistics on the activities of MNEs, detailed annual and quarterly statistics on direct investment, and annual statistics on new investment in the United States. Statistics on international services, released annually, include detailed annual information on trade in services and on services supplied through the channel of direct investment by affiliates of MNEs. U.S. international trade in goods and services, released by BEA and the U.S. Census Bureau, provides monthly statistics on trade in goods and services. ______________________________________________________________________________________________