Recent Updates

  • US: New Res Construction, Import/Export Prices (Aug), BOP (Q2)
  • Belgium: Consumer Confidence Survey (Sep-Press)
  • Greece: Industrial Turnover (Jul); Malta: BOP (Q2)
  • South Africa: BER Building and Construction Survey, Retail Survey (Q3), Domestic Govt Bond Holdings (Aug); Israel: Revenue Indexes, IP (Jul)
  • UK: Employment on a Zero-Hours Contract (Q2)
  • Japan: Construction Works Put in Place, Synthetic Consumption Indicators (Jul)
  • more updates...

Economy in Brief

U.S. Current Account Deficit Deepens
by Tom Moeller  June 20, 2017

The U.S. current account deficit of $116.8 billion during Q1'17 was larger than a revised $114.0 billion in Q4'16. The Q1 deficit figure compared to $123.6 billion expected in the Action Economics Forecast Survey. The latest quarterly deficit was the largest since Q1'16. As a percent of GDP, the deficit of 2.5% was fairly stable compared to the prior three years. Figures were revised back to 2014.

The deeper deficit last quarter was due to an increased $200.3 billion deficit on goods trade, its largest since Q3'08. Goods exports increased 3.6% (8.5% y/y), but imports of goods rose 3.3% (7.9% y/y). The surplus on services trade was stable at $61.3 billion, though that was smaller than the Q2'14 peak of $65.8 billion. Services exports improved 0.8% (2.8% y/y) while services imports gained 0.9% (4.4% y/y). The surplus on primary income fell to $47.7 billion, down from the Q4'11 peak of $59.6 billion. The deficit on secondary income eased to $25.5 billion, its shallowest since Q2'14.

From the capital account, the surplus on foreign direct investment grew to $111.7 billion, its largest since Q4'14.    

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

Housing and Financial Stability is the title of today's speech by Fed Vice Chairman Stanley Fischer and it can be found here.

US Balance of Payments SA Q1'17 Q4'16 Q3'16 Q1'17 2016 2015 2014
Current Account Balance ($ Billion) -116.8 -114.0 -110.3 -119.2 -451.7 -434.6 -373.8
  Deficit % of GDP -2.5 -2.4 -2.4 -2.6 -2.4 -2.3 2.3
 Balance on Goods ($ Billion) -200.3 -195.1 -183.4 -187.6 -752.5 -761.9 -751.5
  Exports 3.6% -0.1% 3.0% -3.0% -3.6% -7.5% 2.6%
  Imports 3.3% 2.0% 1.4% 1.9% -2.8% -4.7% 4.0%
 Balance on Services ($ Billion) 61.3 61.0 62.5 61.5 247.7 261.4 261.2
  Exports 0.8% -0.2% 1.3% -1.0% -0.1% 1.5% 5.8%
  Imports 0.9% 0.9% 2.0% 0.3% 2.6% 2.3% 4.3%
 Balance on Primary Income ($ Billion) 47.7 51.3 41.1 38.1 173.2 181.0 210.8
 Balance on Secondary Income ($ Billion) -25.5 -31.3 -30.5 -31.2 -120.1 -115.1 -94.2
close
large image