Recent Updates

  • GERMANR: Building Permits by State (Oct)
  • Switzerland: SNB Conditional Inflation Forecasts (Dec)
  • Sweden: Job Termination, Registered Unemployment, Services Index, LFS, Hours Worked per Week, Hours Worked (Nov)
  • Slovakia: Industrial Turnover (Oct)
  • FRANCER: CPI Metropolitan France (Nov)
  • France: CPI (Nov)
  • Germany: CPI/HICP (Nov), Agricultural PPI (Oct)
  • South Africa: Financial Statistics (Q3)
  • more updates...

Economy in Brief

U.S. Current Account Deficit Deteriorates As Imports Rise
by Tom Moeller  June 17, 2011

Reported yesterday, the U.S. current account deficit rose in Q1 to $119.3B from a revised $112.2B in Q1 as the gain in imports beat exports. Consensus expectations were for $128.0B. The ratio to GDP was 3.2%, the same as for all of last year. The overall deficit's increase occurred as the goods deficit in Q1 deepened to $182.5B. The 8.3% q/q increase in imports, driven by higher oil prices, outpaced the 5.5% rise in exports. The surplus on services trade rose slightly to $41.7B in Q1. Exports and imports of services rose by roughly equal amounts due to gains in passenger fares. The balance on income surged last quarter to a record $54.8B from $39.9B in Q4.

From the capital account, Q1 saw $507.1B paid to foreigners on investment in the U.S. which by far exceeded $325.2B in payments to the U.S. The imbalance largely reflects foreign ownership of U.S. financial assets. Payments on foreign direct investment in the U.S. fell sharply to $25.3B while payments on investment abroad increased to $86.5B.

Balance of Payments data are in Haver's USINT database, with summaries available in USECON. The expectations figure is in the AS1REPNA database.

US Balance of Payments SA Q1'11 Q4'10 Q3'10 Year Ago 2010 2009 2008
Current Account Balance($ Bil.) -119.3 -112.2 -120.1 -118.3 -470.9 -376.6 -677.1
   Deficit % of GDP 3.2% 3.0% 3.3% 3.3% 3.2% 2.7% 4.7%
 Balance on Goods ($ Bil.) -182.5 -159.2 -167.8 -140.1 -645.9 -505.9 -830.1
   Exports 5.5% 5.3% 3.0% 18.6% 20.5% -18.2% 12.3%
   Imports  8.3% 1.7% 2.4% 18.9% 22.8% -26.3% 7.8%
 Balance on Services ($ Bil.) 41.7 40.5 36.7 33.2 145.8 124.6 131.8
   Exports 2.0% 1.7% 3.3% 9.8% 8.6% -5.5% 9.1%
   Imports 1.6% -1.3% 3.2% 4.5% 5.8% -5.6% 9.5%
 Unilateral Transfers ($ Bil.) -33.2 -33.4 -34.8 -35.0 -136.1 -123.3 -125.9
close
large image