Recent Updates

  • New Zealand: External Migration; Credit Card Statistics (Aug)
  • Markit PMI: Manufacturing Survey - Japan (Flash - Sep)
  • Japan: Tokyo CPI, CPI, TSE Tokyo Pro Market (Aug), Wage Indexes, Monthly Labor Survey, All Industry Activity Indexes (Jul), Labor Economic Trends Survey (Q3)
  • Korea: 20 Days of Trade (Sep), PPI, Domestic Supply Price and Total Output Price Indexes (Aug); Thailand: International Trade Press, Rice Export Price (Aug); Macao: Public
  • 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