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Economy in Brief
U.S. Industrial Production Rebounds
Industrial production jumped a greater-than-expected 0.6% (3.9% year-on-year) during November...
U.S. Business Inventory Accumulation Picks Up
Total business inventories increased 0.6% (5.1% y/y) during October...
U.S. Import Prices Weaken As Petroleum Prices Fall; Export Prices Also Decline
Import prices fell 1.6% (+0.7% y/y) during November following an unrevised 0.5% October rise...
U.S. Government Budget Deficit Surges Unexpectedly
The U.S. Treasury Department reported that the federal government ran a $204.9 billion budget deficit during November...
U.S. Initial Unemployment Insurance Claims Decline
Initial claims for unemployment insurance fell to 206,000 (-7.6% y/y) during the week ended December 8...
by Tom Moeller September 16, 2005
The US current account deficit improved last quarter but it was from a 1Q record that was revised deeper. The 2Q deficit of $195.7B amounted to 6.3% of GDP. Consensus expectations had been for greater improvement to $193.0B.
The deficit in merchandise trade deteriorated to $186.9B from an unrevised $186.3B in 1Q. Exports grew 4.5% (11.7% y/y) and imports rose 2.6% (12.7% y/y).
The surplus on services improved for the third consecutive quarter to $13.6B from a downwardly revised 1Q surplus. Exports of services grew 1.2% (10.3% y/y and imports rose 1.0% (9.7% y/y).
From the capital account, US foreign direct investment abroad fell to $33.6B from an upwardly revised 1Q and foreign direct investment in the US nearly halved q/q to $17.6B.
Unwinding the Current Account Deficit from the Federal Reserve Bank of St. Louis can be found here.
| US Int'l Balance of Payments | 2Q '05 | 1Q '05 | Y/Y | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|---|
| Current Account Deficit | $195.7B | $198.7B | $166.6B | $668.1B | $519.7B | $475.2B |
| Goods/Services/Income Deficit | $173.8B | $172.4B | $146.1B | $587.1B | $448.5B | $411.2B |
| Exports | 4.2% | 2.1% | 14.4% | 14.9% | 6.8% | -3.7% |
| Imports | 3.2% | 2.6% | 15.6% | 18.1% | 7.3% | 1.6% |
| Unilateral Transfers Deficit | $21.9B | $26.3B | $20.5B | $80.9B | $71.2B | $64.0B |
