U.S. international transactions first quarter of 2016.

Anderson, Thomas ; Steiner, Christopher P.

THE U.S. CURRENT-ACCOUNT DEFICIT--a net measure of transactions between the United States and the rest of the world in goods, services, primary income, and secondary income--increased to $124.7 billion (preliminary) in the first quarter of 2016 from $113.4 billion (revised) in the fourth quarter of 2015 (chart 1; see also table A on page 2). The deficit increased to 2.7 percent of current-dollar gross domestic product (GDP) from 2.5 percent in the fourth quarter.

The increase in the current-account deficit reflected a decrease in the surplus on primary income and an increase in the deficit on secondary income. These changes were partly offset by a decrease in the deficit on goods and an increase in the surplus on services.

[ILLUSTRATION OMITTED]

Net U.S. borrowing measured by financial account transactions was $35.0 billion in the first quarter of 2016, a $13.3 billion increase from net borrowing of $21.8 billion in the fourth quarter of 2015 (see table D on page 8). A shift from net U.S. repayment to net U.S. incurrence of liabilities excluding financial derivatives more than offset a shift to net U.S. acquisition of assets excluding financial derivatives. Net transactions in financial derivatives other than reserves reflected more net lending in the first quarter than in the fourth quarter.

The statistical discrepancy--the difference between the net acquisition of assets and the net incurrence of liabilities in the financial account (including financial derivatives) less the difference between total credits and total debits recorded in the current account and the capital account--decreased $2.0 billion in the first quarter to $89.6 billion.

[ILLUSTRATION OMITTED]

Current-account highlights

* The deficit on goods decreased $2.0 billion in the first quarter to $186.4 billion (table A).

* The surplus on services increased $0.4 billion to $64.6 billion.

* The surplus on primary income decreased $9.6 billion to $37.5 billion.

* The deficit on secondary income increased $4.0 billion to $40.3 billion.

Financial-account highlights

* Transactions in financial assets excluding financial derivatives shifted $219.3 billion in the first quarter to net U.S. acquisition of $66.8 billion.

* Transactions in liabilities excluding financial derivatives shifted $233.8 billion to net U.S. incurrence of $115.5 billion.

* Transactions in financial derivatives other than reserves reflected first-quarter net lending of $13.6 billion, a $1.3 billion increase from net lending in the fourth quarter.

[ILLUSTRATION OMITTED]

Current Account--Exports of Goods and Services and Income Receipts

Exports of goods and services and income receipts decreased $8.0 billion (1.0 percent) in the first quarter to $768.2 billion (table B). The decrease was more than accounted for by an $11.2 billion decrease in goods exports to $354.0 billion, which included decreases in industrial supplies and materials, primarily petroleum and products, and in capital goods except automotive. These decreases were partly offset by the following increases:

* Primary income receipts increased $2.2 billion to $194.3 billion, primarily reflecting an increase in portfolio investment income that more than offset a decrease in direct investment income.

* Services exports increased $1.1 billion to $188.1 billion. The increase was more than accounted for by an increase in travel (for all purposes including education).

[ILLUSTRATION OMITTED]

Current Account--Imports of Goods and Services and Income Receipts

Imports of goods and services and income payments increased $3.3 billion (0.4 percent) to $892.9 billion (table C). The increase was attributable to the following:

* Primary income payments increased $11.8 billion to $156.8 billion, reflecting increases in direct investment income, portfolio investment income, and other investment income.

* Secondary income payments increased $3.9 billion to $72.1 billion, mostly reflecting an increase in U.S. government transfers.

* Services imports increased $0.7 billion to $123.5 billion, primarily reflecting an increase in travel (for all purposes including education).

These increases were partly offset by a $13.2 billion decrease in goods imports to $540.5 billion, which primarily reflected decreases in industrial supplies and materials, primarily petroleum and products, and in capital goods except automotive.

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Current Account--Goods, Services, and Income

[ILLUSTRATION OMITTED]

In the first quarter of 2016, goods exports declined 3.1 percent, and goods imports declined 2.4 percent. This was the sixth consecutive quarter of decline for exports and the fifth for imports. The last time both grew was in the second quarter of 2014.

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In the first quarter of 2016, the deficit on petroleum and products decreased while the deficit on nonpetroleum products increased. In 17 of the past 24 quarters, the former deficit has decreased; in 18 of the past 24 quarters, the latter deficit has increased.

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In the first quarter of 2016, both services exports and services imports grew 0.6 percent. Over the last eight quarters, exports have grown at an average quarterly rate of 0.3 percent, and imports have grown at an average quarterly rate of 0.6 percent.

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In the first quarter of 2016, both primary investment income receipts and payments increased. Over the past eight quarters, direct investment has accounted for 56.5 percent of receipts, and portfolio investment has accounted for 67.0 percent of payments.

Current Account--Exports and Imports of Goods by Country

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In the first quarter of 2016, exports of goods to four of the five recipient countries shown in the chart decreased. These five countries are the top five recipient countries in the first quarter of 2016 in table 2.2; this table provides seasonally adjusted trade-in-goods statistics for a selec-tion of 15 countries that together accounted for 70.8 percent of goods exports in the first quarter. Exports of goods to Canada have declined for six consecutive quarters; first-quarter 2016 exports were 17.8 percent lower than third-quarter 2014 exports. Seasonally adjusted sta-tistics on trade by major end-use category are not avail-able, but annual statistics (table 2.3) show that more than half of the 10.4 percent decrease in goods exports to Canada from 2014 to 2015 was accounted for by a decrease in industrial supplies and materials.

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In the first quarter of 2016, imports of goods from China rose, but imports from the other four source countries shown in the chart declined; together, imports from these five countries declined 1.5 percent, a less rapid de-cline than the 2.4 percent decline in total imports of goods. These five countries are the top five source countries in the first quarter of 2016 in table 2.2; this table provides seasonally adjusted trade-in-goods statistics for a selection of 15 countries that together accounted for 77.0 percent of goods imports in the first quarter. Imports of goods from Canada have declined for six consec-utive quarters; first-quarter 2016 imports were 23.1 percent lower than third-quarter 2014 imports. Season-ally adjusted statistics on trade by major end-use cate-gory are not available, but annual statistics (table 2.3) show that nearly all of the 15.0 percent decrease in goods imports from Canada from 2014 to 2015 was accounted for by a decrease in industrial supplies and materials.

Current Account--Exports and Imports of Services by Country

[ILLUSTRATION OMITTED]

In the first quarter of 2016, exports of services to China, Mexico and the United Kingdom increased while exports to Canada and Japan decreased. These five countries are the top five recipient countries in the first quarter of 2016 in table 3.2; this table provides seasonally adjusted trade-in-services statistics for a selection of 15 countries that together accounted for 56.8 percent of services exports in the first quarter. Exports of services to China have increased 63.7 percent since the second quarter of 2012. Seasonally adjusted statistics on trade by major category are not available, but annual statistics (table 3.3) show that about three-fourths of the 29.1 percent increase in services exports to China from 2013 to 2015 was accounted for by an increase in travel (for all purposes including education). Annual statistics also show that about three-fourths of the 10.2 percent decrease in services exports to Canada from 2013 to 2015 was in travel (for all purposes including education).

[ILLUSTRATION OMITTED]

In the first quarter of 2016, imports of services from Germany, Canada, and the United Kingdom increased, while imports from India and Japan decreased. These five countries are the top five source countries in the first quarter of 2016 in table 3.2; this table provides seasonally adjusted trade-in-services statistics for a selection of 15 countries that together accounted for 56.5 percent of services imports in the first quarter. Over the period shown in the chart, these five countries have accounted for 34.7 percent of total imports of services. Imports of services from India decreased in the most recent two quarters, but they had trended up before then. Annual statistics (table 3.3) show that more than half of the 21.1 percent increase in services imports from India from 2013 to 2015 was accounted for by an increase in telecommunications, computer, and information services.

Financial Account -- U.S. Acquisition of Financial Assets and Incurrence of Liabilities

Net U.S. acquisition of financial assets

A $219.3 billion first-quarter shift to net U.S. acquisition of financial assets excluding financial derivatives was attributable to the following (table D):

* Transactions in other investment assets shifted $161.9 billion to net acquisition of $36.7 billion, reflecting a shift to net acquisition of deposits, which is a component of currency and deposits, and a decrease in net foreign repayment of loans.

* Net sales of U.S. portfolio assets decreased $60.7 billion to $61.6 billion, mainly reflecting a shift to net purchases of short-term debt securities.

The shift to net acquisition of assets was moderated by a $3.1 billion decrease in net acquisition of direct investment assets.

Net U.S. incurrence of liabilities

A $233.8 billion shift to net U.S. incurrence of liabilities excluding financial derivatives was attributable to the following:

* Transactions in other investment liabilities shifted $213.6 billion to net U.S. incurrence of $50.4 billion, primarily reflecting a shift to net incurrence of liabilities in loans.

* Net incurrence of direct investment liabilities increased $53.1 billion to $79.9 billion, reflecting a shift to net U.S. incurrence of liabilities in debt instruments and an increase in equity investment.

Transactions in portfolio investment liabilities shifted $32.9 billion to net foreign sales of $14.8 billion; the shift partly offset the changes in direct investment and other investment.

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Data Availability and Methodology

Detailed statistics for U.S. international transactions accompany this article in tables 1.1-9.1. The statistics and a description of the estimation methods used to compile them are also available on BEA's Web site.

The links in the text and tables of this article are to the latest available statistics in the interactive tables.

For the statistics, see "International Data." For the methods, see U.S. International Transactions Accounts: Concepts and Methods.

Revisions

The U.S. international transactions statistics for the first quarter of 2012 to the fourth quarter of 2015 have been revised to incorporate newly available and revised source data, improved estimation methodologies, and updated seasonal adjustments.

For more information, see "Annual Revision of the U.S. International Accounts" in this issue of the SURVEY OF CURRENT BUSINESS.

Thomas Anderson and Christopher P. Steiner prepared this article.

Table A. U.S. International Transactions
[Millions of dollars, seasonally adjusted]

                                                             2015
                                                 II (r)      III (r)


   Current account
Exports of goods and services and income
 receipts (credits)                              805,411     791,880
 Exports of goods and services                   572,383     564,276
  Goods                                          383,935     377,157
  Services                                       188,448     187,118
 Primary income receipts                         199,359     196,752
 Secondary income (current transfer) receipts     33,669      30,852
Imports of goods and services and income
 payments (debits)                               917,315     914,985
 Imports of goods and services                   696,411     689,887
  Goods                                          574,812     566,925
  Services                                       121,599     122,961
 Primary income payments                         154,288     154,903
 Secondary income (current transfer)
  payments                                        66,616      70,195
   Capital account
Capital transfer receipts and other credits            0           0
Capital transfer payments and other debits            20           1
   Financial account
Net U.S. acquisition of financial assets
 excluding financial derivatives (net
 increase in assets / financial outflow (+))     104,122     -83,824
 Direct investment assets                        114,779      51,322
 Portfolio investment assets                     140,675     -97,468
 Other investment assets                        -150,455     -37,412
 Reserve assets                                     -877        -266
Net U.S. incurrence of liabilities excluding
 financial derivatives (net increase in
 liabilities / financial inflow (+))             205,435     -39,884
 Direct investment liabilities                   108,005      50,590
 Portfolio investment liabilities                256,154    -126,250
 Other investment liabilities                   -158,723      35,775
Financial derivatives other than reserves, net
 transactions                                      1,708         746
   Statistical discrepancy
Statistical discrepancy (1)                       12,318      79,913
   Balances
Balance on current account                      -111,904    -123,106
 Balance on goods and services                  -124,028    -125,611
  Balance on goods                              -190,876    -189,768
  Balance on services                             66,848      64,157
 Balance on primary income                        45,071      41,848
 Balance on secondary income                     -32,947     -39,343
Balance on capital account                           -20          -1
Net lending (+) or net borrowing (-) from
 current- and capital-account transactions (2)
Net lending (+) or net borrowing (-) from       -111,924    -123,106
 financial-account transactions (3)              -99,605     -43,194

                                                             2016
                                                 IV (r)      I(p)


   Current account
Exports of goods and services and income
 receipts (credits)                              776,218     768,218
 Exports of goods and services                   552,236     542,104
  Goods                                          365,275     354,041
  Services                                       186,962     188,063
 Primary income receipts                         192,089     194,262
 Secondary income (current transfer) receipts     31,893      31,852
Imports of goods and services and income
 payments (debits)                               889,625     892,889
 Imports of goods and services                   676,445     663,976
  Goods                                          553,678     540,470
  Services                                       122,767     123,506
 Primary income payments                         144,974     156,764
 Secondary income (current transfer)
  payments                                        68,205      72,149
   Capital account
Capital transfer receipts and other credits            0           0
Capital transfer payments and other debits             0        n.a.
   Financial account
Net U.S. acquisition of financial assets
 excluding financial derivatives (net
 increase in assets / financial outflow (+))    -152,461      66,803
 Direct investment assets                         95,969      92,901
 Portfolio investment assets                    -122,306     -61,622
 Other investment assets                        -125,134      36,716
 Reserve assets                                     -990      -1,191
Net U.S. incurrence of liabilities excluding
 financial derivatives (net increase in
 liabilities / financial inflow (+))            -118,322     115,488
 Direct investment liabilities                    26,773      79,900
 Portfolio investment liabilities                 18,109     -14,823
 Other investment liabilities                   -163,204      50,411
Financial derivatives other than reserves, net
 transactions                                     12,353      13,643
   Statistical discrepancy
Statistical discrepancy (1)                       91,620      89,629
   Balances
Balance on current account                      -113,406    -124,671
 Balance on goods and services                  -124,209    -121,872
  Balance on goods                              -188,404    -186,429
  Balance on services                             64,195      64,557
 Balance on primary income                        47,115      37,498
 Balance on secondary income                     -36,312     -40,297
Balance on capital account                             0           0
Net lending (+) or net borrowing (-) from
 current- and capital-account transactions (2)
Net lending (+) or net borrowing (-) from       -113,406    -124,671
 financial-account transactions (3)              -21,786     -35,042

                                                  Change
                                                  2015:IV
                                                  to 2016:I

   Current account
Exports of goods and services and income
 receipts (credits)                                -8,000
 Exports of goods and services                    -10,132
  Goods                                           -11,234
  Services                                          1,101
 Primary income receipts                            2,173
 Secondary income (current transfer) receipts         -41
Imports of goods and services and income
 payments (debits)                                  3,264
 Imports of goods and services                    -12,469
  Goods                                           -13,208
  Services                                            739
 Primary income payments                           11,790
 Secondary income (current transfer)
  payments                                          3,944
   Capital account
Capital transfer receipts and other credits             0
Capital transfer payments and other debits           n.a.
   Financial account
Net U.S. acquisition of financial assets
 excluding financial derivatives (net
 increase in assets / financial outflow (+))      219,264
 Direct investment assets                          -3,068
 Portfolio investment assets                       60,684
 Other investment assets                          161,850
 Reserve assets                                      -201
Net U.S. incurrence of liabilities excluding
 financial derivatives (net increase in
 liabilities / financial inflow (+))              233,810
 Direct investment liabilities                     53,127
 Portfolio investment liabilities                 -32,932
 Other investment liabilities                     213,615
Financial derivatives other than reserves, net
 transactions                                       1,290
   Statistical discrepancy
Statistical discrepancy (1)                        -1,991
   Balances
Balance on current account                        -11,265
 Balance on goods and services                      2,337
  Balance on goods                                  1,975
  Balance on services                                 362
 Balance on primary income                         -9,617
 Balance on secondary income                       -3,985
Balance on capital account                              0
Net lending (+) or net borrowing (-) from
 current- and capital-account transactions (2)
Net lending (+) or net borrowing (-) from         -11,265
 financial-account transactions (3)               -13,256

(p) Preliminary r Revised n.a. Not available
(1.) The statistical discrepancy is the difference between net
acquisition of assets and net incurrence of liabilities in the
financial account (including financial derivatives) less the difference
between total credits and total debits recorded in the current and
capital accounts.
(2.) Sum of current-account and capital-account balances.
(3.) Sum of net U.S. acquisition of financial assets and net
transactions in financial derivatives less net U.S. incurrence of
liabilities.
NOTE. The statistics are presented in table 1.2 on BEA's Web site.

Table B. Exports of Goods and Services and Income Receipts
[Millions of dollars, seasonally adjusted]

                                                            2015


                                                       II (r)  III (r)

    Exports of goods and services and income
      receipts                                       805,411  791,880
Exports of goods                                     383,935  377,157
 General merchandise                                 379,072  371,021
  Foods, feeds, and beverages                         32,741   32,121
   Grains and preparations                             7,408    7,405
   Soybeans                                            4,690    5,294
   Other foods, feeds, and beverages                  20,643   19,422
  Industrial supplies and materials                  109,896  103,427
   Energy products                                    34,889   30,673
    Of which: Petroleum and products                  30,527   27,262
   Nonenergy products                                 75,007   72,754
    Chemicals except medicinals                       28,457   28,029
    Metals and nonmetallic products                   20,209   18,887
    Other nonenergy products                          26,341   25,838
  Capital goods except automotive                    136,316  134,012
   Electric generating machinery, apparatus, and
    parts                                             14,212   14,182
   Industrial engines, pumps, and compressors          6,818    6,725
   Other industrial machinery                         19,626   19,963
   Computers, peripherals, and parts                  11,670   11,814
   Semiconductors                                     10,773   10,598
   Telecommunications equipment                       10,817   10,310
   Other machinery, equipment, tools, and
    instruments                                       30,396   29,547
   Civilian aircraft, engines, and parts              30,093   29,183
   Other transportation equipment                      1,909    1,690
  Automotive vehicles, parts, and engines             38,000   38,620
   Passenger cars                                     13,722   14,283
   Trucks, buses, and special purpose vehicles         4,600    4,362
   Engines, parts, and accessories                    19,678   19,975
  Consumer goods except food and automotive           48,627   49,010
   Nondurable goods                                   22,386   22,681
    Medicinal, dental, and pharmaceutical
     products                                         13,170   13,505
    Other                                              9,216    9,176
   Durable goods                                      26,242   26,330
    Household and kitchen appliances and other
     household goods                                   9,808    9,933
    Other                                             16,434   16,397
  Other general merchandise                           13,492   13,831
 Net exports of goods under merchanting                   41       74
 Nonmonetary gold                                      4,822    6,062
Exports of services (1)                              188,448  187,118
 Maintenance and repair services n.i.e.                5,818    6,018
 Transport                                            21,972   21,550
  Of which: Air passenger transport                   10,480   10,246
 Travel (for all purposes including education)        51,406   51,712
  Business                                            10,806   10,731
  Personal                                            40,600   40,981
 Insurance services                                    4,184    4,237
 Financial services                                   25,826   24,981
 Charges for the use of intellectual property n.i.e   31,525   31,252
  Industrial processes                                11,659   11,261
  Computer software                                    9,208    9,719
  Other                                               10,658   10,272
 Telecommunications, computer, and information
  services                                             8,889    9,062
 Other business services                              33,715   32,936
 Government goods and services n.i.e                   5,112    5,369
Primary income receipts                              199,359  196,752
 Investment income                                   197,596  194,969
  Direct investment income                           111,269  106,676
   Income on equity                                  106,416  102,054
   Interest                                            4,853    4,622
  Portfolio investment income                         78,387   80,014
   Income on equity and investment fund shares        51,373   53,349
   Interest on debt securities                        27,014   26,665
  Other investment income                              7,880    8,227
   Interest                                            5,469    5,801
   Income attributable to insurance policyholders      2,411    2,426
  Reserve asset income                                    59       53
 Compensation of employees                             1,764    1,782
Secondary income (current transfer) receipts (2)        33,669   30,852

                                                               2016


                                                      IV (r)   I (p)

    Exports of goods and services and income
      receipts                                       776,218  768,218
Exports of goods                                     365,275  354,041
 General merchandise                                 360,173  349,734
  Foods, feeds, and beverages                         30,049   28,858
   Grains and preparations                             6,067    5,899
   Soybeans                                            4,992    3,995
   Other foods, feeds, and beverages                  18,990   18,964
  Industrial supplies and materials                   95,873   92,184
   Energy products                                    27,119   24,720
    Of which: Petroleum and products                  23,949   21,851
   Nonenergy products                                 68,754   67,464
    Chemicals except medicinals                       26,408   25,807
    Metals and nonmetallic products                   17,666   17,339
    Other nonenergy products                          24,680   24,318
  Capital goods except automotive                    132,751  129,467
   Electric generating machinery, apparatus, and
    parts                                             13,712   13,832
   Industrial engines, pumps, and compressors          6,676    6,671
   Other industrial machinery                         18,486   17,993
   Computers, peripherals, and parts                  11,639   11,886
   Semiconductors                                     10,553   11,057
   Telecommunications equipment                       10,577    9,798
   Other machinery, equipment, tools, and
    instruments                                       29,374   28,227
   Civilian aircraft, engines, and parts              30,369   28,673
   Other transportation equipment                      1,366    1,331
  Automotive vehicles, parts, and engines             37,664   37,547
   Passenger cars                                     13,077   13,288
   Trucks, buses, and special purpose vehicles         4,481    4,558
   Engines, parts, and accessories                    20,106   19,700
  Consumer goods except food and automotive           49,168   48,324
   Nondurable goods                                   23,360   22,832
    Medicinal, dental, and pharmaceutical
     products                                         14,198   13,950
    Other                                              9,162    8,882
   Durable goods                                      25,807   25,493
    Household and kitchen appliances and other
     household goods                                   9,720    9,396
    Other                                             16,087   16,097
  Other general merchandise                           14,668   13,354
 Net exports of goods under merchanting                   63       53
 Nonmonetary gold                                      5,038    4,254
Exports of services (1)                              186,962  188,063
 Maintenance and repair services n.i.e.                6,627    6,396
 Transport                                            21,594   21,354
  Of which: Air passenger transport                   10,277   10,149
 Travel (for all purposes including education)        51,569   52,997
  Business                                            10,659   10,870
  Personal                                            40,910   42,127
 Insurance services                                    4,492    4,403
 Financial services                                   24,318   24,940
 Charges for the use of intellectual property n.i.e   30,739   30,381
  Industrial processes                                11,700   11,553
  Computer software                                    8,708    8,573
  Other                                               10,331   10,255
 Telecommunications, computer, and information
  services                                             9,168    9,274
 Other business services                              33,654   33,687
 Government goods and services n.i.e                   4,800    4,631
Primary income receipts                              192,089  194,262
 Investment income                                   190,304  192,463
  Direct investment income                           104,645  101,728
   Income on equity                                   99,302   96,632
   Interest                                            5,343    5,097
  Portfolio investment income                         77,497   81,702
   Income on equity and investment fund shares        51,115   55,961
   Interest on debt securities                        26,382   25,741
  Other investment income                              8,101    9,004
   Interest                                            5,656    6,540
   Income attributable to insurance policyholders      2,445    2,465
  Reserve asset income                                    61       28
 Compensation of employees                             1,785    1,799
Secondary income (current transfer) receipts (2)        31,893   31,852

                                                      Change
                                                      2015:IV
                                                      to
                                                      2016:I

    Exports of goods and services and income
      receipts                                       -8,000
Exports of goods                                     11,234
 General merchandise                                 10,439
  Foods, feeds, and beverages                        -1,191
   Grains and preparations                             -168
   Soybeans                                            -997
   Other foods, feeds, and beverages                    -26
  Industrial supplies and materials                  -3,689
   Energy products                                   -2,399
    Of which: Petroleum and products                 -2,098
   Nonenergy products                                -1,290
    Chemicals except medicinals                        -601
    Metals and nonmetallic products                    -327
    Other nonenergy products                           -362
  Capital goods except automotive                    -3,284
   Electric generating machinery, apparatus, and
    parts                                               120
   Industrial engines, pumps, and compressors            -5
   Other industrial machinery                          -493
   Computers, peripherals, and parts                    247
   Semiconductors                                       504
   Telecommunications equipment                        -779
   Other machinery, equipment, tools, and
    instruments                                      -1,147
   Civilian aircraft, engines, and parts             -1,696
   Other transportation equipment                       -35
  Automotive vehicles, parts, and engines              -117
   Passenger cars                                       211
   Trucks, buses, and special purpose vehicles           77
   Engines, parts, and accessories                     -406
  Consumer goods except food and automotive            -844
   Nondurable goods                                    -528
    Medicinal, dental, and pharmaceutical
     products                                          -248
    Other                                              -280
   Durable goods                                       -314
    Household and kitchen appliances and other
     household goods                                   -324
    Other                                                10
  Other general merchandise                          -1,314
 Net exports of goods under merchanting                 -10
 Nonmonetary gold                                      -784
Exports of services (1)                               1,101
 Maintenance and repair services n.i.e.                -231
 Transport                                             -240
  Of which: Air passenger transport                    -128
 Travel (for all purposes including education)        1,428
  Business                                              211
  Personal                                            1,217
 Insurance services                                     -89
 Financial services                                     622
 Charges for the use of intellectual property n.i.e    -358
  Industrial processes                                 -147
  Computer software                                    -135
  Other                                                 -76
 Telecommunications, computer, and information
  services                                              106
 Other business services                                 33
 Government goods and services n.i.e                   -169
Primary income receipts                               2,173
 Investment income                                    2,159
  Direct investment income                           -2,917
   Income on equity                                  -2,670
   Interest                                            -246
  Portfolio investment income                         4,205
   Income on equity and investment fund shares        4,846
   Interest on debt securities                         -641
  Other investment income                               903
   Interest                                             884
   Income attributable to insurance policyholders        20
  Reserve asset income                                  -33
 Compensation of employees                               14
Secondary income (current transfer) receipts (2)          -41

(p) Preliminary (r) Revised n.i.e. Not included elsewhere
(1.) See also Alexis Grimm and Charu Krishnan, "U.S. International
Services: Trade in Services in 2014 and Services Supplied Through
Affiliates in 2013" SURVEY OF CURRENT BUSINESS 95 (October 2015).
(2.) Secondary income receipts include U.S. government and private
transfers, such as fines and penalties, withholding taxes,
insurance-related transfers, and other current transfers.
NOTE. The statistics are presented in table 2.1, table 3.1, table 4.1,
and table 5.1 on BEA's Web site.

Table C. Imports of Goods and Services and Income Payments
[Millions of dollars, seasonally adjusted]


                                                         2015
                                                         II (r)

   Imports of goods and services and income
     payments                                            917,315
Imports of goods                                         574,812
  General merchandise                                    571,436
    Foods, feeds, and beverages                           32,657
    Industrial supplies and materials                    126,686
      Energy products                                     56,216
        Of which: Petroleum and products                  52,115
       Nonenergy products                                 70,470
         Chemicals except medicinals                      18,965
         Metals and nonmetallic products                  25,795
          Nonferrous metals                                8,924
          Other metals and nonmetallic products           16,871
        Other nonenergy products                          25,710
    Capital goods except automotive                      153,233
      Machinery and equipment except consumer-type       137,159
       Electric generating machinery, apparatus,
          and parts                                       18,140
       Industrial engines, pumps, and compressors          6,360
       Computers, peripherals, and parts                  29,948
       Semiconductors                                     11,509
       Telecommunications equipment                       16,182
       Other machinery, equipment, tools, and
        instruments                                       55,020
     Civilian aircraft, engines, and parts                14,107
       Of which: Civilian aircraft, complete, all types    4,634
     Other transportation equipment                        1,967
   Automotive vehicles, parts, and engines                88,257
    Passenger cars                                        40,909
    Trucks, buses, and special purpose vehicles            9,345
    Engines, parts, and accessories                       38,005
  Consumer goods, except food and automotive             149,259
   Nondurable goods                                       72,172
    Medicinal, dental, and pharmaceutical
      products                                            28,762
     Other                                                43,410
   Durable goods                                          77,086
    Household and kitchen appliances and other
      household goods                                     42,148
      Of which: Other household goods,
       including cell phones                              27,671
    Other                                                 34,938
  Other general merchandise                               21,344
 Nonmonetary gold                                          3,376
Imports of services (1)                                  121,599
  Maintenance and repair services n.i.e.                   2,146
  Transport                                               24,183
     Of which: Air passenger transport                     8,854
   Travel (for all purposes including education)          27,888
      Business                                             3,916
      Personal                                            23,972
    Insurance services                                    11,896
    Financial services                                     6,449
    Charges for the use of intellectual property n.i.e.    9,875
     Industrial processes                                  5,273
     Computer software                                     1,593
     Other                                                 3,009
   Telecommunications, computer, and information
     services                                              9,134
   Other business services                                24,576
   Government goods and services n.i.e.                    5,450
Primary income payments                                  154,288
  Investment income                                      149,835
    Direct investment income                              45,754
      Income on equity                                    35,938
      Interest                                             9,816
    Portfolio investment income                          100,471
      Income on equity and investment fund shares         34,642
      Interest on debt securities                         65,829
    Other investment income                                3,611
      Interest                                             2,953
      Income attributable to insurance policyholders         658
  Compensation of employees                                4,453
Secondary income (current transfer) payments (2)          66,616



                                                         III (r)

   Imports of goods and services and income
     payments                                            914,985
Imports of goods                                         566,925
  General merchandise                                    563,627
    Foods, feeds, and beverages                           32,074
    Industrial supplies and materials                    121,422
      Energy products                                     53,256
        Of which: Petroleum and products                  48,958
       Nonenergy products                                 68,166
         Chemicals except medicinals                      18,139
         Metals and nonmetallic products                  24,404
          Nonferrous metals                                7,865
          Other metals and nonmetallic products           16,539
        Other nonenergy products                          25,623
    Capital goods except automotive                      150,361
      Machinery and equipment except consumer-type       134,905
       Electric generating machinery, apparatus,
          and parts                                       17,496
       Industrial engines, pumps, and compressors          5,839
       Computers, peripherals, and parts                  30,890
       Semiconductors                                     11,690
       Telecommunications equipment                       16,759
       Other machinery, equipment, tools, and
        instruments                                       52,231
     Civilian aircraft, engines, and parts                13,689
       Of which: Civilian aircraft, complete, all types    4,497
     Other transportation equipment                        1,767
   Automotive vehicles, parts, and engines                88,534
    Passenger cars                                        42,704
    Trucks, buses, and special purpose vehicles            8,569
    Engines, parts, and accessories                       37,261
  Consumer goods, except food and automotive             149,751
   Nondurable goods                                       70,547
    Medicinal, dental, and pharmaceutical
      products                                            26,893
     Other                                                43,654
   Durable goods                                          79,204
    Household and kitchen appliances and other
      household goods                                     42,747
      Of which: Other household goods,
       including cell phones                              27,533
    Other                                                 36,457
  Other general merchandise                               21,485
 Nonmonetary gold                                          3,298
Imports of services (1)                                  122,961
  Maintenance and repair services n.i.e.                   2,451
  Transport                                               24,322
     Of which: Air passenger transport                     8,983
   Travel (for all purposes including education)          28,209
      Business                                             3,908
      Personal                                            24,301
    Insurance services                                    12,020
    Financial services                                     6,405
    Charges for the use of intellectual property n.i.e.    9,871
     Industrial processes                                  5,300
     Computer software                                     1,639
     Other                                                 2,932
   Telecommunications, computer, and information
     services                                              9,184
   Other business services                                25,092
   Government goods and services n.i.e.                    5,408
Primary income payments                                  154,903
  Investment income                                      150,301
    Direct investment income                              45,387
      Income on equity                                    35,467
      Interest                                             9,921
    Portfolio investment income                          101,101
      Income on equity and investment fund shares         34,768
      Interest on debt securities                         66,333
    Other investment income                                3,813
      Interest                                             3,142
      Income attributable to insurance policyholders         671
  Compensation of employees                                4,602
Secondary income (current transfer) payments (2)          70,195



                                                         IV (r)

   Imports of goods and services and income
     payments                                            889,625
Imports of goods                                         553,678
  General merchandise                                    550,752
    Foods, feeds, and beverages                           31,578
    Industrial supplies and materials                    109,742
      Energy products                                     44,202
        Of which: Petroleum and products                  40,286
       Nonenergy products                                 65,540
         Chemicals except medicinals                      17,245
         Metals and nonmetallic products                  22,881
          Nonferrous metals                                7,391
          Other metals and nonmetallic products           15,490
        Other nonenergy products                          25,414
    Capital goods except automotive                      149,532
      Machinery and equipment except consumer-type       134,008
       Electric generating machinery, apparatus,
          and parts                                       17,682
       Industrial engines, pumps, and compressors          5,741
       Computers, peripherals, and parts                  29,058
       Semiconductors                                     12,016
       Telecommunications equipment                       17,523
       Other machinery, equipment, tools, and
        instruments                                       51,988
     Civilian aircraft, engines, and parts                13,708
       Of which: Civilian aircraft, complete, all types    4,632
     Other transportation equipment                        1,817
   Automotive vehicles, parts, and engines                88,799
    Passenger cars                                        43,303
    Trucks, buses, and special purpose vehicles            8,515
    Engines, parts, and accessories                       36,981
  Consumer goods, except food and automotive             149,107
   Nondurable goods                                       69,926
    Medicinal, dental, and pharmaceutical
      products                                            27,561
     Other                                                42,365
   Durable goods                                          79,180
    Household and kitchen appliances and other
      household goods                                     43,412
      Of which: Other household goods,
       including cell phones                              28,267
    Other                                                 35,768
  Other general merchandise                               21,995
 Nonmonetary gold                                          2,926
Imports of services (1)                                  122,767
  Maintenance and repair services n.i.e.                   2,287
  Transport                                               23,979
     Of which: Air passenger transport                     8,919
   Travel (for all purposes including education)          29,231
      Business                                             4,098
      Personal                                            25,134
    Insurance services                                    11,826
    Financial services                                     6,125
    Charges for the use of intellectual property n.i.e.   10,175
     Industrial processes                                  5,485
     Computer software                                     1,764
     Other                                                 2,926
   Telecommunications, computer, and information
     services                                              9,049
   Other business services                                24,920
   Government goods and services n.i.e.                    5,175
Primary income payments                                  144,974
  Investment income                                      140,316
    Direct investment income                              36,165
      Income on equity                                    27,115
      Interest                                             9,049
    Portfolio investment income                           99,975
      Income on equity and investment fund shares         32,643
      Interest on debt securities                         67,332
    Other investment income                                4,177
      Interest                                             3,490
      Income attributable to insurance policyholders         687
  Compensation of employees                                4,658
Secondary income (current transfer) payments (2)          68,205


                                                         2016
                                                         I (p)

   Imports of goods and services and income
     payments                                            892,889
Imports of goods                                         540,470
  General merchandise                                    537,083
    Foods, feeds, and beverages                           32,824
    Industrial supplies and materials                    101,993
      Energy products                                     38,046
        Of which: Petroleum and products                  34,428
       Nonenergy products                                 63,947
         Chemicals except medicinals                      17,043
         Metals and nonmetallic products                  21,701
          Nonferrous metals                                7,146
          Other metals and nonmetallic products           14,555
        Other nonenergy products                          25,203
    Capital goods except automotive                      145,483
      Machinery and equipment except consumer-type       131,856
       Electric generating machinery, apparatus,
          and parts                                       17,429
       Industrial engines, pumps, and compressors          5,707
       Computers, peripherals, and parts                  28,349
       Semiconductors                                     12,695
       Telecommunications equipment                       16,717
       Other machinery, equipment, tools, and
        instruments                                       50,959
     Civilian aircraft, engines, and parts                12,227
       Of which: Civilian aircraft, complete, all types    3,197
     Other transportation equipment                        1,400
   Automotive vehicles, parts, and engines                88,441
    Passenger cars                                        42,812
    Trucks, buses, and special purpose vehicles            9,000
    Engines, parts, and accessories                       36,628
  Consumer goods, except food and automotive             147,260
   Nondurable goods                                       70,113
    Medicinal, dental, and pharmaceutical
      products                                            27,744
     Other                                                42,369
   Durable goods                                          77,148
    Household and kitchen appliances and other
      household goods                                     43,658
      Of which: Other household goods,
       including cell phones                              28,624
    Other                                                 33,490
  Other general merchandise                               21,082
 Nonmonetary gold                                          3,387
Imports of services (1)                                  123,506
  Maintenance and repair services n.i.e.                   2,353
  Transport                                               24,231
     Of which: Air passenger transport                     9,216
   Travel (for all purposes including education)          29,960
      Business                                             4,099
      Personal                                            25,861
    Insurance services                                    11,682
    Financial services                                     6,148
    Charges for the use of intellectual property n.i.e.   10,057
     Industrial processes                                  5,329
     Computer software                                     1,770
     Other                                                 2,958
   Telecommunications, computer, and information
     services                                              9,029
   Other business services                                25,025
   Government goods and services n.i.e.                    5,021
Primary income payments                                  156,764
  Investment income                                      151,946
    Direct investment income                              43,126
      Income on equity                                    32,522
      Interest                                            10,604
    Portfolio investment income                          103,031
      Income on equity and investment fund shares         36,128
      Interest on debt securities                         66,903
    Other investment income                                5,790
      Interest                                             5,085
      Income attributable to insurance policyholders         704
  Compensation of employees                                4,818
Secondary income (current transfer) payments (2)          72,149

                                                         Change:
                                                         2015:IV
                                                         to 2016:I

   Imports of goods and services and income
     payments                                              3,264
Imports of goods                                         -13,208
  General merchandise                                    -13,669
    Foods, feeds, and beverages                            1,246
    Industrial supplies and materials                     -7,749
      Energy products                                     -6,156
        Of which: Petroleum and products                  -5,858
       Nonenergy products                                 -1,593
         Chemicals except medicinals                        -202
         Metals and nonmetallic products                  -1,180
          Nonferrous metals                                 -245
          Other metals and nonmetallic products             -935
        Other nonenergy products                            -211
    Capital goods except automotive                       -4,049
      Machinery and equipment except consumer-type        -2,152
       Electric generating machinery, apparatus,
          and parts                                         -253
       Industrial engines, pumps, and compressors            -34
       Computers, peripherals, and parts                    -709
       Semiconductors                                        679
       Telecommunications equipment                         -806
       Other machinery, equipment, tools, and
        instruments                                       -1,029
     Civilian aircraft, engines, and parts                -1,481
       Of which: Civilian aircraft, complete, all types   -1,435
     Other transportation equipment                         -417
   Automotive vehicles, parts, and engines                  -358
    Passenger cars                                          -491
    Trucks, buses, and special purpose vehicles              485
    Engines, parts, and accessories                         -353
  Consumer goods, except food and automotive              -1,847
   Nondurable goods                                          187
    Medicinal, dental, and pharmaceutical
      products                                               183
     Other                                                     4
   Durable goods                                          -2,032
    Household and kitchen appliances and other
      household goods                                        246
      Of which: Other household goods,
       including cell phones                                 357
    Other                                                 -2,278
  Other general merchandise                                 -913
 Nonmonetary gold                                            461
Imports of services (1)                                      739
  Maintenance and repair services n.i.e.                      66
  Transport                                                  252
     Of which: Air passenger transport                       297
   Travel (for all purposes including education)             729
      Business                                                 1
      Personal                                               727
    Insurance services                                      -144
    Financial services                                        23
    Charges for the use of intellectual property n.i.e.     -118
     Industrial processes                                   -156
     Computer software                                         6
     Other                                                    32
   Telecommunications, computer, and information
     services                                                -20
   Other business services                                   105
   Government goods and services n.i.e.                     -154
Primary income payments                                   11,790
  Investment income                                       11,630
    Direct investment income                               6,961
      Income on equity                                     5,407
      Interest                                             1,555
    Portfolio investment income                            3,056
      Income on equity and investment fund shares          3,485
      Interest on debt securities                           -429
    Other investment income                                1,613
      Interest                                             1,595
      Income attributable to insurance policyholders          17
  Compensation of employees                                  160
Secondary income (current transfer) payments (2)           3,944

(p) Preliminary (r) Revised n.i.e Not included elsewhere
(1.) See also Alexis Grimm and Charu Krishnan, "U.S. International
Services: Trade in Services in 2014 and Services Supplied Through
Affiliates in 2013" SURVEY OF CURRENT BUSINESS 95 (October 2015).
(2.) Secondary income payments include U.S. government and private
transfers, such as U.S. government grants and pensions, fines and
penalties, withholding taxes, personal transfers (remittances),
insurance-related transfers, and other current transfers.
NOTE. The statistics are presented in table 2.1, table 3.1, table 4.1,
and table 5.1 on BEA's Web site.

Table D. Net U.S. Acquisition of Financial Assets and
Net U.S. Incurrence of Liabilities
[Millions of dollars, seasonally adjusted]

                                                            2015
                                                   II (r)    III (r)

Net U.S. acquisition of financial assets
 excluding financial derivatives (net
 increase in assets / financial outflow (+))      104,122   -83,824
Direct investment assets                          114,779    51,322
 Equity                                            81,904    79,509
  Equity other than reinvestment of earnings        4,079     5,994
  Reinvestment of earnings                         77,826    73,515
 Debt instruments                                  32,875   -28,186
Portfolio investment assets                       140,675   -97,468
 Equity and investment fund shares                113,691   -54,115
 Debt securities                                   26,983   -43,354
  Short-term securities                            22,795    12,690
  Long-term corporate securities                    2,749   -40,261
  Other long-term securities                        1,439   -15,783
Other investment assets                          -150,455   -37,412
 Currency and deposits                            -70,144   -66,480
 Loans                                            -79,588    28,173
 Trade credit and advances                           -723       895
Reserve assets                                       -877      -266
 Monetary gold                                          0         0
 Special drawing rights                                 2         2
 Reserve position in the International Monetary
  Fund                                               -930      -314
 Other reserve assets                                  52        46
Net U.S. incurrence of liabilities excluding
 financial derivatives (net increase in
 liabilities / financial inflow (+))              205,435   -39,884
Direct investment liabilities                     108,005    50,590
 Equity                                            59,370    40,520
  Equity other than reinvestment of earnings       34,027    17,436
  Reinvestment of earnings                         25,342    23,085
 Debt instruments                                  48,635    10,069
Portfolio investment liabilities                  256,154  -126,250
 Equity and investment fund shares                -22,605   -33,301
 Debt securities                                  278,759   -92,949
  Short term                                       -5,818   -51,361
   Treasury bills and certificates                 -1,012   -34,134
   Federally sponsored agency securities            9,259    -7,170
   Other short-term securities                    -14,065   -10,057
  Long term                                       284,577   -41,588
   Treasury bonds and notes                        78,088   -78,274
   Federally sponsored agency securities           46,561     5,056
   Corporate bonds and notes                      158,370    30,763
   Other                                            1,558       867
Other investment liabilities                     -158,723    35,775
 Currency (short term)                               -624    13,364
 Deposits                                          -1,096    -2,418
 Loans                                           -162,179    19,479
 Trade credit and advances                          5,175     5,351
 Special drawing rights allocations                     0         0

                                                             2016
                                                   IV (r)    I (p)

Net U.S. acquisition of financial assets
 excluding financial derivatives (net
 increase in assets / financial outflow (+))     -152,461    66,803
Direct investment assets                           95,969    92,901
 Equity                                            73,622    81,055
  Equity other than reinvestment of earnings         -419     7,494
  Reinvestment of earnings                         74,041    73,561
 Debt instruments                                  22,347    11,845
Portfolio investment assets                      -122,306   -61,622
 Equity and investment fund shares                -54,186   -82,879
 Debt securities                                  -68,121    21,256
  Short-term securities                           -20,563    46,063
  Long-term corporate securities                  -33,903   -19,817
  Other long-term securities                      -13,655    -4,990
Other investment assets                          -125,134    36,716
 Currency and deposits                            -50,368    63,520
 Loans                                            -73,938   -29,898
 Trade credit and advances                           -828     3,094
Reserve assets                                       -990  -1,191 0
 Monetary gold                                          0         2
 Special drawing rights                                 2    -1,214
 Reserve position in the International Monetary
  Fund                                             -1,046        21
 Other reserve assets                                  54   115,488
Net U.S. incurrence of liabilities excluding
 financial derivatives (net increase in
 liabilities / financial inflow (+))             -118,322    79,900
Direct investment liabilities                      26,773    66,964
 Equity                                            40,884    46,008
  Equity other than reinvestment of earnings       26,116    20,955
  Reinvestment of earnings                         14,768    12,937
 Debt instruments                                 -14,111   -14,823
Portfolio investment liabilities                   18,109   -80,002
 Equity and investment fund shares               -153,464    65,179
 Debt securities                                  171,573   -10,464
  Short term                                       65,957       217
   Treasury bills and certificates                 57,561    -7,243
   Federally sponsored agency securities           -1,119    -3,438
   Other short-term securities                      9,515    75,643
  Long term                                       105,616    17,525
   Treasury bonds and notes                        61,067    25,914
   Federally sponsored agency securities          -17,327    31,670
   Corporate bonds and notes                       59,740       534
   Other                                            2,136    50,411
Other investment liabilities                     -163,204    12,578
 Currency (short term)                             14,122   -54,994
 Deposits                                           9,499    88,431
 Loans                                           -186,267     4,396
 Trade credit and advances                           -559         0
 Special drawing rights allocations                     0

                                                  Change
                                                  2015:IV to 2016:I

Net U.S. acquisition of financial assets
 excluding financial derivatives (net
 increase in assets / financial outflow (+))       219,264
Direct investment assets                            -3,068
 Equity                                              7,433
  Equity other than reinvestment of earnings         7,913
  Reinvestment of earnings                            -480
 Debt instruments                                  -10,502
Portfolio investment assets                         60,684
 Equity and investment fund shares                 -28,693
 Debt securities                                    89,377
  Short-term securities                             66,626
  Long-term corporate securities                    14,086
  Other long-term securities                         8,665
Other investment assets                            161,850
 Currency and deposits                             113,888
 Loans                                              44,040
 Trade credit and advances                           3,922
Reserve assets                                        -201
 Monetary gold                                           0
 Special drawing rights                                  0
 Reserve position in the International Monetary
  Fund                                                -168
 Other reserve assets                                  -33
Net U.S. incurrence of liabilities excluding
 financial derivatives (net increase in
 liabilities / financial inflow (+))               233,810
Direct investment liabilities                       53,127
 Equity                                             26,080
  Equity other than reinvestment of earnings        19,892
  Reinvestment of earnings                           6,187
 Debt instruments                                   27,048
Portfolio investment liabilities                   -32,932
 Equity and investment fund shares                  73,462
 Debt securities                                   106,394
  Short term                                       -76,421
   Treasury bills and certificates                 -57,344
   Federally sponsored agency securities            -6,124
   Other short-term securities                     -12,953
  Long term                                        -29,973
   Treasury bonds and notes                        -43,542
   Federally sponsored agency securities            43,241
   Corporate bonds and notes                       -28,070
   Other                                            -1,602
Other investment liabilities                       213,615
 Currency (short term)                              -1,544
 Deposits                                          -64,493
 Loans                                             274,698
 Trade credit and advances                           4,955
 Special drawing rights allocations                      0

(p) Preliminary (r) Revised NOTE. The statistics are presented in table
1.2, table 6.1, table 7.1, and table 8.1 on BEA's Web site.

Preliminary and Revised Fourth-Quarter 2015 Statistics
[Millions of dollars, seasonally adjusted]

                                                  Preliminary  Revised

Balance on goods                                  -187,282     -188,404
Balance on services                                 53,536       64,195
Balance on primary income                           42,757       47,115
Balance on secondary income (current transfers)    -34,326      -36,312
Balance on current account                        -125,314     -113,406
Net U.S. acquisition of financial assets          -126,071     -152,461
Net U.S. incurrence of liabilities                 -84,412     -118,322
Net lending or borrowing from financial-account
  transactions                                     -29,377      -21,786