Global| Sep 17 2014U.S. Current Account Deficit Shrinks
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. current account deficit decreased in Q2'14 to $98.5 billion from $102.1 billion in Q1.The deficit amounted to 2.3% of GDP, roughly the same as during all of last year. The Action Economics Forecast Survey called for a deficit [...]
The U.S. current account deficit decreased in Q2'14 to $98.5 billion from $102.1 billion in Q1.The deficit amounted to 2.3% of GDP, roughly the same as during all of last year. The Action Economics Forecast Survey called for a deficit of $113.8 billion.
Last quarter's deficit on merchandise trade deepened to $189.2 billion, its most since 2012. Goods exports rose 2.3% (3.5% y/y) last quarter, the strongest rise since Q3'11. Imports of goods increased 2.8% (4.5% y/y), the firmest gain since Q2 2011.
The trade surplus on services improved to a record $58.9 billion. Services exports increased 1.6% (4.2% y/y). Travel exports gained 3.7% (7.3% y/y) and financial services exports rose 2.1% (3.7% y/y). Imports of services rose 1.4% (3.0% y/y) as travel imports increased 5.5% (6.7% y/y) and financial services imports rose 1.8% (1.6% y/y).
The surplus on primary income improved slightly to $53.1 billion as receipts from abroad grew 4.3% y/y and payments to foreigners increased 1.8% y/y. The deficit on secondary income eased to $21.4 billion as receipts grew 42.0% y/y and payments rose 2.2% y/y.
Balance of Payments data are in Haver's USINT database, with summaries available in USECON. The expectations figure is in the AS1REPNA database.
| US Balance of Payments SA | Q2'14 | Q1'14 | Q2'13 | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|
| Current Account Balance ($ Billion) | -98.5 | -102.1 | -106.1 | -400.3 | -460.8 | -459.3 |
| Deficit % of GDP | -2.3% | -2.4% | -2.6% | -2.4% | -2.9% | -3.0% |
| Balance on Goods ($ Billion) | -189.2 | -182.3 | -177.1 | -701.7 | -742.1 | -740.6 |
| Exports | 2.3% | -1.9% | 0.6% | 2.0% | 4.2% | 16.2% |
| Imports | 2.8% | 1.0% | 0.3% | -0.4% | 2.9% | 15.5% |
| Balance on Services ($ Billion) | 58.9 | 57.8 | 55.3 | 225.3 | 204.5 | 192.0 |
| Exports | 1.6 | 0.0 | 4.2% | 5.0% | 5.2% | 11.0% |
| Imports | 1.4% | -0.9% | 3.0% | 2.6% | 3.4% | 6.5% |
| Balance on Primary Income ($ Billion) | 53.1 | 52.4 | 47.5 | 199.7 | 203.0 | 221.0 |
| Balance on Secondary Income ($Billion) | -21.4 | -30.0 | -31.9 | -123.5 | -126.1 | -131.7 |
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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