U.S. International Transactions: Second Quarter 2013
The U.S. current-account deficit—the combined balances on trade in goods and services, income, and net unilateral current transfers—decreased to $98.9 billion (preliminary) in the second quarter from $104.9 billion (revised) in the first quarter. The decrease in the current- account deficit was accounted for by a decrease in the deficit on goods, an increase in the surplus on income, and an increase in the surplus on services. These changes were partly offset
by an increase in net outflows of unilateral current transfers, such as government grants, government pensions and other transfers, and private remittances.
Goods and services
The deficit on goods and services decreased to $117.8 billion in the second quarter from $122.6 billion in the first.
Goods
The deficit on goods decreased to $175.7 billion in the second quarter from $179.5 billion in the first.
Goods exports increased to $394.7 billion from $390.7 billion. Exports in four of the six major end-use categories increased. The largest increases were in capital goods and in consumer goods. The increase in capital goods was largely due to an increase in civilian aircraft, engines, and parts. The largest decrease was in foods, feeds, and beverages and was mostly due to a decrease in soybeans.
Goods imports increased to $570.4 billion from $570.2 billion. Increases in five of the six major end-use categories were nearly offset by a substantial decrease in industrial supplies and materials. The largest increase was in automotive vehicles, parts, and engines, much of that in passenger cars. The decrease in industrial supplies and materials was mostly due to a decrease in petroleum and products.
Services
The surplus on services increased to $57.9 billion in the second quarter from $56.8 billion in the first.
Services exports increased to $169.2 billion from $167.2 billion. Exports increased in five of the seven major services categories. More than half the increase was in other private services, primarily in financial services and in business, professional, and technical services.
Services imports increased to $111.3 billion from $110.4 billion. Imports increased in six of the seven major services categories. The largest increases were in travel and in other transportation.
Income
The surplus on income increased to $53.1 billion in the second quarter from $50.9 billion in the first.
Investment income
Income receipts on U.S.-owned assets abroad increased to $190.8 billion from $190.0 billion. The increase was more than accounted for by an increase in other private receipts, which consists of interest and dividends. Direct investment receipts and U.S. government receipts decreased.
Income payments on foreign-owned assets in the United States decreased to $135.6 billion from $137.1 billion. The decrease was more than accounted for by decreases in direct
investment payments and in U.S. government payments. Other private payments increased.
Compensation of employees
Receipts for compensation of U.S. residents paid by nonresidents were $1.7 billion in the second quarter, up from $1.6 billion in the first. Payments for compensation of foreign residents paid by U.S. residents were $3.8 billion in the second quarter, up from $3.7 billion in the first.
Unilateral current transfers
Net unilateral current transfers to foreigners were $34.2 billion in the second quarter, up from $33.1 billion in the first. The increase was mostly due to an increase in net outflows of U.S. government pensions and other transfers that resulted from a decrease in fines and
penalties received by the U.S. government from foreign corporations. U.S. government grants to foreigners also increased.
Capital Account
Net capital-account transactions are not available for the second quarter because source data are not yet available. In the first quarter, net payments were less than $0.1 billion.
Financial Account
Net financial inflows were $73.1 billion in the second quarter, up from $40.4 billion in the first. U.S.-owned assets abroad and foreign-owned assets in the United States both increased less than in the first quarter, and outflows of U.S.-owned assets abroad were down more relative to the first quarter than were inflows of foreign-owned assets in the United States. Net inflows of financial derivatives decreased in the second quarter.
U.S.-owned assets abroad
U.S.-owned assets abroad increased $109.6 billion in the second quarter after increasing $229.1 billion in the first.
U.S. official reserve assets decreased $0.2 billion in the second quarter after increasing $0.9 billion in the first. The second-quarter decrease reflected a decrease in the U.S. reserve position in the International Monetary Fund.
U.S. government assets other than official reserve assets decreased $3.9 billion in the second quarter after increasing $0.4 billion in the first. The decrease reflected a reduction of central bank liquidity swaps between the U.S. Federal Reserve System and foreign central
banks.
U.S. direct investment abroad was $95.5 billion in the second quarter, up from $84.1 billion in the first. The increase was more than accounted for by a shift in equity investment to net outflows in the second quarter from net inflows in the first quarter.
U.S. purchases of foreign securities exceeded sales (net purchases) by $80.1 billion in the second quarter, down from net purchases of $133.8 billion in the first. Net purchases of foreign bonds were $3.8 billion, down from net purchases of $60.0 billion in the first. Net purchases of foreign stocks were $76.3 billion, up from net purchases of $73.8 billion in the first.
U.S. claims on unaffiliated foreigners reported by U.S. nonbanking concerns increased $67.1 billion in the second quarter after increasing $22.4 billion in the first. An example of these claims is deposits of U.S. nonbanks at foreign banks.
U.S. claims on foreigners reported by U.S. banks and securities brokers decreased $129.0 billion in the second quarter after decreasing $12.6 billion in the first. Examples of these claims are deposits of U.S. banks at foreign banks and loans by U.S. banks to foreigners.
Foreign-owned assets in the United States
Foreign-owned assets in the United States increased $179.3 billion in the second quarter after increasing $265.5 billion in the first.
Foreign official assets in the United States decreased $9.7 billion in the second quarter after increasing $126.9 billion in the first. The second-quarter decrease was more than accounted for by net sales of U.S. government securities.
Foreign direct investment in the United States was $37.9 billion in the second quarter, up from $28.6 billion in the first. The increase was accounted for by lower net outflows of intercompany debt investment and by larger reinvested earnings than in the first quarter.
Foreign private sales of U.S. Treasury securities exceeded purchases (net sales) by $0.3 billion in the second quarter, a shift from net purchases of $50.8 billion in the first quarter. The shift to net sales reflected a shift to net sales of U.S. Treasury bills and
certificates and a decrease in net purchases of U.S. Treasury bonds and notes.
Foreign private sales of U.S. securities other than U.S. Treasury securities exceeded purchases (net sales) by $30.0 billion in the second quarter, up from net sales of $11.0 billion in the first. Net purchases of U.S. corporate bonds were $19.8 billion, down from $32.3 billion. Net sales of U.S. stocks were $29.7 billion, up from $23.4 billion. Net sales of U.S. federally sponsored agency bonds were $20.1 billion, up from $19.8 billion.
Net shipments of U.S. currency to foreign countries were $9.5 billion in the second quarter following net shipments of $5.0 billion in the first.
U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking concerns increased $18.7 billion in the second quarter after decreasing $20.9 billion in the first. An example of these liabilities is loans by foreign banks to U.S. nonbanks.
U.S. liabilities to foreigners reported by U.S. banks and securities brokers, other than those recorded under foreign official assets, increased $153.2 billion in the second quarter after increasing $86.2 billion in the first. Examples of these liabilities are deposits of foreign residents at U.S. banks and loans by foreign banks to U.S. banks.
Financial Derivatives
Net inflows of financial derivatives were $3.5 billion in the second quarter after net inflows of $3.9 billion in the first.
Source: U.S. Bureau of Economic Analysis
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