Research >> Economics
2Q2018 Current Account Deficit Decreased
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The U.S. current-account deficit decreased to $101.5 billion (preliminary) in the second quarter of 2018 from $121.7 billion (revised) in the first quarter of 2018, according to statistics released by the Bureau of Economic Analysis (BEA). The deficit was 2.0 percent of current-dollar gross domestic product (GDP) in the second quarter, down from 2.4 percent in the first quarter.
The $20.3 billion decrease in the current-account deficit reflected a $17.6 billion decrease in the deficit on goods, a $2.5 billion increase in the surplus on services, and relatively small and offsetting changes in the balances on primary income and secondary income.
Exports of goods and services and income receipts increased $28.0 billion in the second quarter to $933.3 billion.
* Goods exports increased $17.8 billion to $429.2 billion, mostly reflecting increases in industrial supplies and materials, primarily petroleum and products, and in foods, feeds, and beverages, primarily soybeans.
* Primary income receipts increased $3.9 billion to $259.9 billion, primarily reflecting increases in portfolio investment income and in other investment income. A decrease in direct investment income partly offset the increases. For more information on direct investment income, see the box "Effects of the 2017 Tax Cuts and Jobs Act on Components of the International Transactions Accounts."
* Services exports increased $3.2 billion to $209.2 billion, mainly reflecting increases in other business services, led by professional and management consulting services, in financial services, and in charges for the use of intellectual property.
Imports of goods and services and income payments increased $7.7 billion in the second quarter to $1,034.7 billion.
* Primary income payments increased $4.2 billion to $199.1 billion, mainly reflecting increases in other investment income and in portfolio investment income. A decrease in direct investment income partly offset the increases.
* Secondary income payments increased $2.7 billion to $63.4 billion, primarily reflecting an increase in U.S. government grants.
Posted: September 19, 2018 Wednesday 08:30 AM