Global| Sep 17 2015U.S. Current Account Deficit Shrinks
by:Tom Moeller
|in:Economy in Brief
Summary
The current account deficit of $109.7 billion in Q2 eased from $118.3 billion in Q1 and compared to $92.0 billion in Q2'14. The data are seasonally adjusted. The deficit in goods trade eased and the services surplus grew The surplus [...]
The current account deficit of $109.7 billion in Q2 eased from $118.3 billion in Q1 and compared to $92.0 billion in Q2'14. The data are seasonally adjusted. The deficit in goods trade eased and the services surplus grew The surplus on primary income grew and the deficit in secondary income narrowed. The current account deficit reading was more favorable than the deficit of $111.2 billion expected in the Action Economics Forecast Survey.
The deficit on goods of $188.4 billion in Q2 narrowed from $192.2 billion in Q1. Exports improved 0.5% (-6.0% y/y) while imports eased 0.3% (-4.0% y/y). The deficit was little-changed from a year ago.
The trade surplus on services increased to $58.4 billion from a revised $57.9 billion in Q1. It also has been meandering sideways for a year. Exports of services gained 0.6% (0.7% y/y), while imports of services edged up 0.5% (1.9% y/y).
The surplus on primary income recovered to $50.6 billion in Q2 from a lessened $49.7 billion in Q1. It shrank, however, from $57.9 billion a year earlier. The balance on direct investment income recovered to $41.2 billion; the portfolio income surplus expanded.
From the financial account, private direct investment abroad amounted to 101.1billion in Q2 after its plunge to $67.4 billion in Q1. Portfolio investment declined to $166.3 billion after surging to a record $233.5 billion in Q1.
Balance of Payments data are in Haver's USINT database, with summaries available in USECON. The expectations figure is in the AS1REPNA database.
| US Balance of Payments SA* | Q2'15 | Q1'15 | Q4'14 | Y/Y | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Current Account Balance ($ Billion) | -109.7 | -118.3 | -103.1 | -92.0 | -389.5 | -376.8 | -449.7 |
| Deficit % of GDP | -2.5 | -2.7 | -2.3 | -2.1 | -2.2 | -2.2 | -2.8 |
| Balance on Goods ($ Billion) | -188.4 | -192.2 | -186.0 | -188.1 | -741.5 | -702.6 | -741.1 |
| Exports | 0.5% | -6.4% | -0.9% | -6.0% | 2.5% | 1.9% | 4.2% |
| Imports | -0.3% | -3.4% | -0.2% | -4.0% | 3.5% | -0.4% | 2.9% |
| Balance on Services ($ Billion) | 58.4 | 57.9 | 57.6 | 59.4 | 233.1 | 224.2 | 204.4 |
| Exports | 0.6% | -0.5% | 2.0% | 0.7% | 3.3% | 4.8% | 4.6% |
| Imports | 0.5% | -1.0% | 2.6% | 1.9% | 3.0% | 2.6% | 3.7% |
| Balance on Primary Income ($ Billion) | 50.6 | 49.7 | 60.0 | 57.9 | 238.0 | 224.5 | 212.2 |
| Balance on Secondary Income ($ Billion) | -30.3 | -33.8 | -34.8 | -21.3 | -119.2 | -122.9 | -125.1 |
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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