U.S. International Transactions, 3rd Quarter 2022

Current-Account Balance

The U.S. current-account deficit, which reflects nan mixed balances connected waste and acquisition successful equipment and services and income flows betwixt U.S. residents and residents of different countries, narrowed by $21.6 billion, aliases 9.1 percent, to $217.1 cardinal successful nan 3rd 4th of 2022, according to statistic released coming by nan U.S. Bureau of Economic Analysis. The revised second-quarter shortage was $238.7 billion.

The third-quarter shortage was 3.4 percent of current-dollar gross home product, down from 3.8 percent successful nan 2nd quarter.

The $21.6 cardinal narrowing of nan current-account shortage successful nan 3rd 4th mostly reflected a decreased shortage connected equipment that was partially offset by a decreased surplus connected superior income and an accrued shortage connected secondary income.

Current-Account Transactions (tables 1–5)

Exports of equipment and services to, and income received from, overseas residents accrued $26.5 cardinal to $1.14 trillion successful nan 3rd quarter. Imports of equipment and services from, and income paid to, overseas residents accrued $4.8 cardinal to $1.35 trillion.

Trade successful equipment (table 2)

Exports of equipment accrued $7.2 cardinal to $547.0 billion, reflecting increases successful nonmonetary golden and successful superior goods, mostly civilian craft engines and parts and different business machinery, that were partially offset by a alteration successful foods, feeds, and beverages, mostly soybeans and corn. Imports of equipment decreased $32.5 cardinal to $818.2 billion, reflecting wide decreases successful user equipment and successful business supplies and materials. The alteration successful user equipment was led by family and room appliances and different family goods, and nan alteration successful business supplies and materials was led by metals and nonmetallic products.

Trade successful services (table 3)

Exports of services accrued $4.9 cardinal to $234.0 billion, reflecting increases successful different business services, chiefly master and guidance consulting services, and successful travel, mostly education-related recreation and different individual travel. Imports of services accrued $1.6 cardinal to $173.5 billion, reflecting increases successful travel, mostly different individual recreation and education-related travel, and successful financial services, mostly financial intermediation services indirectly measured and financial guidance services, that were partially offset by a alteration successful transport, mostly oversea freight transport.

Primary income (table 4)

Receipts of superior income accrued $15.2 cardinal to $314.0 billion, and payments of superior income accrued $26.8 cardinal to $268.4 billion. The increases successful some receipts and payments chiefly reflected increases successful different finance income, mostly liking connected loans and deposits. These increases were chiefly owed to higher short-term liking rates that resulted from important national costs complaint hikes by nan Federal Reserve Board successful May, June, July, and September. U.S. different finance assets and liabilities are chiefly denominated successful U.S. dollars.

Secondary income (table 5)

Receipts of secondary income decreased $0.8 cardinal to $42.7 billion, reflecting a alteration successful wide authorities transfers, mostly fines and penalties. Payments of secondary income accrued $9.0 cardinal to $94.9 billion, reflecting an summation successful wide authorities transfers, mostly world cooperation.

Capital-Account Transactions (table 1)

Capital-transfer receipts were $9.1 cardinal successful nan 3rd quarter. The transactions reflected receipts from overseas security companies for losses resulting from Hurricane Ian. For accusation connected transactions associated pinch hurricanes and different disasters, spot “How do losses recovered from overseas security companies pursuing earthy aliases man-made disasters impact overseas transactions, nan existent relationship balance, and nett lending aliases nett borrowing?”.

Financial-Account Transactions (tables 1, 6, 7, and 8)

Net financial-account transactions were −$294.2 cardinal successful nan 3rd quarter, reflecting nett U.S. borrowing from overseas residents.

Financial assets (tables 1, 6, 7, and 8)

Third-quarter transactions accrued U.S. residents’ overseas financial assets by $411.0 billion. Transactions accrued portfolio finance assets, mostly equity and semipermanent indebtedness securities, by $368.9 billion; nonstop finance assets, chiefly equity, by $56.7 billion; and reserve assets by $0.8 billion. Transactions decreased different finance assets by $15.5 billion, resulting from partially offsetting transactions successful loans and deposits.

Liabilities (tables 1, 6, 7, and 8)

Third-quarter transactions accrued U.S. liabilities to overseas residents by $671.2 billion. Transactions accrued portfolio finance liabilities, mostly semipermanent indebtedness securities and equity, by $463.2 billion; different finance liabilities, mostly loans, by $106.6 billion; and nonstop finance liabilities, mostly equity, by $101.4 billion.

Financial derivatives (table 1)

Net transactions successful financial derivatives were –$33.9 cardinal successful nan 3rd quarter, reflecting nett U.S. borrowing from overseas residents.

Next release: March 23, 2023, astatine 8:30 a.m. EDT
U.S. International Transactions, 4th Quarter and Year 2022