Global| Dec 16 2004U.S. Current Account Deficit Deepened
by:Tom Moeller
|in:Economy in Brief
Summary
The US current account deficit deepened slightly in 3Q04 to a record $164.7B versus $164.4B the prior quarter, originally reported at $166.2B. Consensus expectations had been for a 3Q deficit of $171.0B. The deficit in merchandise [...]
The US current account deficit deepened slightly in 3Q04 to a record $164.7B versus $164.4B the prior quarter, originally reported at $166.2B. Consensus expectations had been for a 3Q deficit of $171.0B.
The deficit in merchandise trade deteriorated to $166.7B from an unrevised $163.6B in 2Q. A 14.8% y/y gain in exports lagged an 18.7% rise in imports.
The surplus on services fell to $11.4B from a downwardly revised to $12.5B in 2Q. Exports of services rose 9.7% y/y while imports rose 13.1%.
From the capital account, US foreign direct investment abroad fell to $43.5B (-3.8% y/y) and foreign direct investment in the US surged to $53.1B, the highest level since 2Q01. The balance of $9.6B was the first positive balance since 2Q01.
| US Int'l Balance of Payments | 3Q '04 | 2Q '04 | Y/Y | 2003 | 2002 | 2001 |
|---|---|---|---|---|---|---|
| Current Account Deficit | $164.7B | $164.4B | $133.9B | $530.7B | $473.9B | $385.7B |
| Goods/Services/Income Deficit | $150.1B | $146.0B | $115.0B | $463.2B | $414.6B | $339.1B |
| Exports | 2.7% | 3.6% | 16.1% | 5.8% | -3.9% | -9.0% |
| Imports | 2.7% | 6.7% | 19.8% | 7.3% | 1.5% | -8.2% |
| Unilateral Transfers Deficit | $14.6B | $18.3B | $16.6B | $67.4 | $59.4B | $46.6B |
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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