Global| Mar 14 2006U.S. Current Account Deficit By Far a Record
by:Tom Moeller
|in:Economy in Brief
Summary
The US current account deficit surged last quarter to $224.9B from the revised 3Q deficit $185.4B. Last year, the current account deficit of $804.9B jumped $136.9B from 2004 to a new record and equaled 6.4% of GDP. Consensus [...]
The US current account deficit surged last quarter to $224.9B from the revised 3Q deficit $185.4B. Last year, the current account deficit of $804.9B jumped $136.9B from 2004 to a new record and equaled 6.4% of GDP.
Consensus expectations had been for a 4Q deficit of $220.0B.
The deficit in merchandise trade deteriorated to a record $212.4B from $197.3B in 3Q. Exports jumped 2.9% (10.7% y/y) in a recovery from the modest 0.8% 3Q increase which was restrained by the damage to Gulf Coast port facilities caused by Hurricane Katrina. 
Imports surged 5.1% (13.5% y/y) as petroleum imports rose another 9.1% (37.1% y/y). Imports of non-petroleum products were, however, also strong and rose 4.4% (9.7% y/y).
The surplus on services fell slightly to $15.1B from an upwardly revised $15.9B surplus during 3Q. Exports of services grew 0.6% (7.5% y/y) and 10.4% for the full year. Imports grew 1.7% q/q (6.1% y/y).
From the capital account, net US foreign direct investment abroad was positive for the second consecutive quarter and foreign assets in the US fell from the 3Q high.
| US Int'l Balance of Payments | 4Q '05 | 3Q '05 | Y/Y | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|---|
| Current Account Deficit | $224.9B | $185.4B | $188.4B (4Q04) | $804.9B | $668.1B | $519.7B |
| Goods/Services/Income Deficit | $199.8B | $176.5B | $166.0B | $722.1B | $587.1B | $448.5B |
| Exports | 3.6% | 3.2% | 13.1% | 13.7% | 14.9% | 6.8% |
| Imports | 6.4% | 2.7% | 15.2% | 16.3% | 18.1% | 7.3% |
| Unilateral Transfers Deficit | $25.1BB | $9.0B | $22.4B | $82.9B | $80.9B | $71.2B |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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