Global| Mar 19 2015U.S. Current Account Deficit Deepens Significantly
by:Tom Moeller
|in:Economy in Brief
Summary
During all of 2014, the current account deficit deepened to $410.6 billion from $400.3 billion in 2013. The increase occurred as exports of goods, services & income rose 3.5% and imports gained 3.4%. The deficit deepened to $113.5 [...]
During all of 2014, the current account deficit deepened to $410.6 billion from $400.3 billion in 2013. The increase occurred as exports of goods, services & income rose 3.5% and imports gained 3.4%. The deficit deepened to $113.5 billion last quarter from $98.9 billion in Q3. It amounted to 2.6% of GDP. Exports of goods, services and income fell 1.3% (+0.8% y/y), the third decline of last year, while imports nudged 0.4% higher (3.7% y/y). The Action Economics Forecast Survey called for a Q4 deficit of $103.0 billion.
The Q4 deficit on merchandise trade deepened to $185.2 billion. Goods exports declined 1.2% (0.7% y/y), the first decline since Q1, and imports of goods slipped 0.1% (+3.3% y/y).
The trade surplus on services improved to a record $58.2 billion. Services exports increased 2.1% (3.3% y/y). Travel exports improved 1.7% (0.8% y/y) and financial services exports jumped 8.2% (4.8% y/y). Imports of services gained 2.3% (3.7% y/y), as travel imports increased 4.1% (8.6% y/y) and financial services improved 2.5% (1.9% y/y).
The surplus on primary income fell back from its near-record to $50.6 billion as receipts from abroad declined 4.1% (+1.3% y/y) and payments to foreigners ticked up 0.4% (4.5% y/y). The trade deficit on secondary income deteriorated sharply to a record $37.0 billion.
From the financial account, private direct investment abroad of $128.3 billion was the most since Q2 2011 but accompanied a sharp decline in portfolio investments to $89.8 billion. Direct investments from abroad totaled $47.7 billion and portfolio investments were $145.8 billion.
Balance of Payments data are in Haver's USINT database, with summaries available in USECON. The expectations figure is in the AS1REPNA database.
| US Balance of Payments SA | Q4'14 | Q3'14 | Q2'14 | Y/Y | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Current Account Balance ($ Billion) | -113.5 | -98.9 | -97.3 | -87.3 | -410.6 | -400.3 | -460.8 |
| Deficit % of GDP | -2.6 | -2.3 | -2.3 | -2.1% | -2.4% | -2.4% | -2.9% |
| Balance on Goods ($ Billion) | -185.2 | -181.1 | -188.2 | -169.1 | -735.8 | -701.7 | -742.1 |
| Exports | -1.2% | 1.3% | 2.3% | 0.7% | 2.7% | 2.0% | 4.2% |
| Imports | -0.1% | -0.3% | 2.8% | 3.3% | 3.3% | -0.4% | 2.9% |
| Balance on Services ($ Billion) | 58.2 | 57.2 | 58.0 | 56.6 | 231.1 | 225.3 | 204.5 |
| Exports | 2.1% | -0.6% | 1.8% | 3.3% | 3.2% | 5.0% | 4.3% |
| Imports | 2.3% | -0.2% | 2.5% | 3.7% | 3.5% | 2.6% | 3.4% |
| Balance on Primary Income ($ Billion) | 50.6 | 59.8 | 54.9 | 54.6 | 217.9 | 199.7 | 203.0 |
| Balance on Secondary Income ($ Billion) | -37.0 | -34.8 | -22.0 | -29.5 | -123.8 | -123.5 | -126.1 |
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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