U.S. international transactions: third quarter of 2013.

Scott, Sarah 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, income, and unilateral current transfers--decreased to $94.8 billion (preliminary) in the third quarter from $96.6 billion (revised) in the second quarter (see pages 36-39). (1) The deficit decreased to 2.2 percent of current-dollar gross domestic product (GDP)--its lowest percentage since the first quarter of 1998--from 2.3 percent in the second quarter. (2) The decrease in the current-account deficit was more than accounted for by an increase in the surplus on income, but a decrease in net outflows of unilateral current transfers and an increase in the surplus on services also contributed. These changes were partly offset by an increase in the deficit on goods.

In the financial account, net financial inflows to the United States increased to $67.3 billion in the third quarter from $65.5 billion in the second quarter (see pages 40-41). Net financial flows reflect combined transactions in U.S.-owned assets abroad, in foreign-owned assets in the United States, and in financial derivatives. U.S.-owned assets abroad and foreign-owned assets in the United States both increased less than in the second quarter. Transactions in financial derivatives shifted to net outflows in the third quarter from net inflows in the second quarter.

The statistical discrepancy--the amount that balances the sum of the recorded credits and debits across all the accounts in the international transactions accounts--was $27.6 billion in the third quarter, compared with $31.3 billion in the second quarter.

[GRAPHIC 1 OMITTED]

Data Availability and Methodology

Detailed statistics for U.S. international transactions are presented in tables 1-12 in this article. The statistics and a description of the estimation methods used to compile them are available at www.bea.gov under "International." For the statistics, click on "Interactive Tables: Detailed estimates." For the methods, see "U.S. International Transactions Accounts: Concepts and Estimation Methods" under "Methodologies."

Overview

Current-account highlights

* The deficit on goods increased after decreasing in the previous two quarters. The increase reflected a larger increase in goods imports than in goods exports.

* The surplus on services rose for the fourth straight quarter. The third-quarter increase reflected a larger increase in services exports than in services imports.

* The surplus on income rose for the second straight quarter as income receipts increased and income payments decreased.

Financial-account highlights

* Both U.S.-owned assets abroad and foreign-owned assets in the United States increased less than in the second quarter. Outflows of U.S.-owned assets abroad declined more than inflows of foreign-owned assets in the United States.

* The smaller outflows of U.S.-owned assets abroad reflected a shift to a decrease in U.S. claims on unaffiliated foreigners reported by nonbanking concerns and lower U.S. net purchases of foreign securities. These changes were partly offset by a smaller decrease in U.S. claims reported by U.S. banks and securities brokers.

* The smaller inflows of foreign-owned assets in the United States reflected shifts to decreases in U.S. liabilities reported by banks and brokers and in U.S. liabilities to unaffiliated foreigners reported by nonbanking concerns. These shifts were partly offset by shifts to foreign private and foreign official net purchases of U.S. securities after net sales in the second quarter.

Current Account--Goods

Exports of goods increased for the third straight quarter. The largest third-quarter increases in exports were in industrial supplies and materials and in foods, feeds, and beverages.

Foods, feeds, and beverages exports increased after decreasing for three straight quarters. The increase was largely due to increases in grains and preparations and in soybeans.

Industrial supplies and materials increased after decreasing. The increase was more than accounted for by an increase in petroleum and products that was partly offset by a decrease in nonmonetary gold, a component of nonferrous metals.

Capital goods exports decreased after increasing. The decrease reflected decreases in industrial, agricultural, and service machinery, n.e.c.--primarily materials handling equipment--and in oil drilling, mining, and construction machinery. These decreases were partly offset by an increase in civilian aircraft, engines, and parts.

Automotive vehicles, parts, and engines increased for the third straight quarter. The third-quarter increase reflected an increase in engines, parts, and accessories that was partly offset by a decrease in passenger cars.

Consumer goods exports decreased after increasing. The decrease was mostly accounted for by a decrease in durable goods, primarily in exports of gems, jewelry, and collectibles. Nondurable goods also decreased, reflecting a decrease in medicinal, dental, and pharmaceutical products.

[GRAPHIC 2 OMITTED]

Imports of goods increased more than in the second quarter. Three of the six major end-use import categories increased in the third quarter; the increases in each of these three categories were larger than the combined decrease in the other three categories. The largest increase in imports was in automotive vehicles, parts, and engines.

Imports of foods, feeds, and beverages decreased after increasing for four straight quarters. The largest decrease was in imports of coffee, cocoa, and sugar.

Industrial supplies and materials increased after decreasing for two straight quarters. The increase was more than accounted for by increased imports of petroleum and products.

Capital goods imports increased more than in the second quarter. The largest third-quarter increase was in imports of computers, peripherals, and parts.

Imports of automotive vehicles, parts, and engines increased for the second straight quarter after decreasing for two straight quarters. More than half of the increase was in imports of trucks, buses, and special purpose vehicles.

Consumer goods decreased after increasing for five straight quarters. Most of the decrease was in durable goods, where the decrease was more than accounted for by cell phones, a component of "other" household goods. Nondurable goods also decreased, and the largest decrease was in imports of medicinal, dental, and pharmaceutical products.

[GRAPHIC 3 OMITTED]

Exports of services increased for the fourth straight quarter. The largest third-quarter increases were in travel and in royalties and license fees.

Travel exports--purchases of goods and services by foreign travelers in the United States--increased for the seventh straight quarter.

Passenger fares decreased after increasing for two straight quarters.

"Other" transportation exports decreased more than in the second quarter. The third-quarter decrease mostly resulted from a decrease in freight services.

Imports of services increased less than in the second quarter. The largest third-quarter increases were in other private services and in other transportation.

Travel imports--purchases of goods and services by U.S. travelers abroad--increased less than in either of the two preceding quarters.

Passenger fares decreased after increasing in the two previous quarters. The decrease was smaller than the increases in either the first or second quarter.

"Other" transportation imports increased for the seventh straight quarter. The third-quarter increase primarily reflected an increase in freight services.

[GRAPHIC 4 OMITTED]

Income receipts on U.S. direct investment abroad increased less than in the second quarter. The third-quarter increase was more than accounted for by higher foreign-affiliate earnings in holding companies and wholesale trade.

"Other" private income receipts increased for the fourth straight quarter. The third-quarter increase reflected higher dividend income on U.S. holdings of foreign stocks that was partly offset by lower interest income.

U.S. government receipts decreased for the second quarter in a row after increasing in the first quarter.

Income payments on foreign direct investment in the United States decreased more than in the second quarter. The third-quarter decrease reflected lower U.S.-affiliate earnings in "other industries," particularly in communications and petroleum-related industries.

"Other" private income payments increased less than in each of the past three quarters. The third-quarter increase reflected higher dividend income on foreign holdings of U.S. corporate stocks that was partly offset by lower interest income.

U.S. government payments decreased for the eighth consecutive quarter. The slight third-quarter decrease was mostly due to a decrease in foreign holdings of U.S. agency bonds.

[GRAPHIC 5 OMITTED]

Financial Account--U.S.-Owned Assets Abroad

U.S. official reserve assets decreased for the second straight quarter. The decreases in both quarters were more than accounted for by decreases in the U.S. reserve position in the International Monetary Fund.

U.S. government assets other than official reserve assets decreased less than in the second quarter. The decreases in both quarters reflected decreases in central bank liquidity swaps between the U.S. Federal Reserve System and foreign central banks.

U.S. direct investment abroad was lower than in the second quarter, reflecting a shift to net inflows of inter-company debt from net outflows that was partly offset by higher equity investment and reinvested earnings.

U.S. net purchases of foreign securities (U.S. purchases in excess of U.S. sales) were lower than those in the second quarter; net purchases in both quarters were lower than those in the first quarter. The third-quarter decrease reflected lower net purchases of foreign stocks. Net purchases of foreign bonds increased.

U.S. claims on foreigners reported by nonbanks decreased after increasing in the second quarter. The decrease reflected decreases in deposit claims.

U.S. claims on foreigners reported by U.S. banks and securities brokers--such as U.S. residents' deposits at foreign banks and loans to foreigners--decreased less than the large decrease in the second quarter. The smaller third-quarter decrease was more than accounted for by a smaller decrease in claims for own accounts--particularly a smaller decrease in deposits--than in the second quarter.

[GRAPHIC 6 OMITTED]

Financial Account--Foreign-Owned Assets in the United States

Foreign official assets in the United States increased in the third quarter after decreasing. The increase reflected foreign official net purchases of U.S. government securities and an increase in U.S. liabilities reported by U.S. banks and securities brokers.

Foreign direct investment in the United States was higher than in the second quarter. The third-quarter increase was more than accounted for by higher equity investment. In contrast, reinvested earnings were much lower and net intercompany debt outflows increased.

Purchases of U.S. Treasury securities by private foreigners exceeded sales, a shift from net sales in the second quarter. The shift reflected a shift to net purchases of U.S. Treasury bonds and notes that more than offset an increase in net sales of U.S. Treasury bills and certificates.

Purchases of other U.S. securities by private foreigners exceeded sales, shifting from net sales in the two previous quarters. The shift to net purchases reflected shifts to net purchases of U.S. stocks and agency bonds and an increase in net purchases of U.S. corporate bonds.

U.S. liabilities to foreigners reported by nonbanks decreased after increasing. The decrease reflected a decrease in "other" liabilities, such as loan liabilities to foreigners.

U.S. liabilities to foreigners reported by U.S. banks and securities brokers decreased after increasing. The decrease was mostly accounted for by a decrease in liabilities for own accounts that reflected decreases in foreign-owned banks' deposits and loans with affiliated banks abroad.

[GRAPHIC 7 OMITTED]

[GRAPHIC 8 OMITTED]

Revisions

The preliminary statistics for U.S. international transactions for the first quarter that were published in the October 2013 Survey of Current BUSINESS have been revised to reflect new or revised source data.

Preliminary and Revised Third-Quarter 2013 Statistics

[Millions of dollars, seasonally adjusted]

 Preliminary Revised

Balance on goods -175,652 -175,736
Balance on services 57,865 57,614
Balance on income 53,086 55,997
Unilateral current transfers, net -34,192 -34,488
Balance on current account -98,893 -96,613
Net financial flows 73,123 65,501

Trends in the Trade in Goods

After hitting a recent high in the first quarter of 2012, the deficit has decreased $15.0 billion, or 7.7 percent, as exports rose 2.6 percent and imports declined 0.8 percent. Exports rose in four of the last six quarters and imports rose in three (chart 2). The goods deficit, which increased $2.9 billion in the third quarter, remained at 4.2 percent of current-dollar GDP.

Both real exports and real imports grew for the second straight quarter (table C).

Goods Deficit by Area and Type of Product

The goods deficit increased $2.9 billion in the third quarter after decreasing for two straight quarters--$3.7 billion in the second quarter and $2.9 billion in the first quarter. The increase was more than accounted for by an increase in the deficit with Asia and Pacific, reflecting an increase in the deficit with China. Deficits with Europe, with the Middle East, and with Canada also increased. In contrast, deficits decreased with Latin America and Other Western Hemisphere--reflecting a decrease in the deficit with Mexico--and with Africa.

Petroleum and products. The deficit on petroleum and products decreased less than in the second quarter (chart 3). In the third quarter, imports increased less than exports. The third-quarter deficit on petroleum and products was $29.3 billion lower than the recent high in the second quarter of 2011.

Trends in the Trade in Services

The surplus on services increased to $57.9 billion in the third quarter from $57.6 billion in the second quarter. The surplus increased for the fourth straight quarter. After the first increase in the fourth quarter of 2012, each quarterly increase has been progressively smaller.

Both services exports and imports increased 0.5 percent in the third quarter after more rapid growth in the second quarter. Each one has increased in four of the last five quarters (chart 4).

The services surplus was a higher percentage of current-dollar GDP--at 1.4 percent--in each of the last three quarters than in any other quarter on record.

Trends in Income

The surplus on income increased to $60.0 billion in the third quarter from $56.0 billion. The surplus increased less than in the second quarter after fluctuating in a narrow range over the previous six quarters. The third-quarter surplus was the largest since surpluses of $61.1 billion in the third and fourth quarters of 2011. The surplus was 1.4 percent of U.S. current-dollar GDP in the third quarter of 2013, compared with 1.6 percent in the third quarter of 2011 and 1.2 percent in the first quarter of 2013.

Income receipts on U.S.-owned assets abroad increased for the third time in the last four quarters (chart 5). The third-quarter increase was smaller than in the second quarter, reflecting smaller increases in "other" private receipts and direct investment receipts.

Income payments on foreign-owned assets in the United States decreased in the last two quarters after reaching a 4-year high in the first quarter of 2013. The third-quarter decrease was accounted for by a decrease in direct investment payments that was slightly offset by an increase in "other" private payments.

Developments in the Financial Account

U.S.-owned assets abroad increased for the fifth straight quarter, but by a smaller amount than in the previous four quarters. The third-quarter increase was smaller than that in the second quarter partly as a result of a shift to a decrease from an increase in U.S. claims reported by U.S. nonbanking concerns and lower U.S. net purchases of foreign securities (tables A and G). These changes were partly offset by a smaller decrease in U.S. claims reported by U.S. banks and securities brokers.

Foreign-owned assets in the United States also increased for the fifth straight quarter and similar to U.S.-owned assets abroad, the third-quarter increase was smaller than the increases in the previous four quarters. The smaller increase relative to the second quarter reflected a smaller increase in foreign private assets that was due to shifts to decreases from increases in U.S. liabilities reported by U.S. banks and securities brokers and in U.S. liabilities reported by U.S. nonbanking concerns (tables A and H). These shifts were partly offset by shifts to foreign private and foreign official net purchases of U.S. securities from second-quarter net sales.

The shifts by foreign private investors and foreign official agencies to net purchases from net sales of U.S. Treasury and agency instruments may have been influenced by the U.S. Federal Reserve's September announcement that the pace of asset purchases would not be reduced at that time.

(1.) Quarterly statistics are seasonally adjusted when series demonstrate statistically significant seasonal patterns; seasonally adjusted statistics are cited in this article when available.

(2.) Current-dollar GDP is used to provide a consistently scaled comparison across time. In this context, its use does not imply that these international transactions accounts statistics are components of GDP.

Table A. U.S. International Transactions

[Millions of dollars, seasonally adjusted]

(Credits +; debits -) 2012 2013

 IV I II (r)

Current account

Exports of goods and 753,430 749,493 760,170
 services and income
 receipts
 Goods, balance of 390,339 390,705 394,653
 payments basis
 Services 166,222 167,178 170,074
 Income receipts 196,869 191,610 195,443
Imports of goods and -823,844 -821,245 -822,295
 services and income payments
 Goods, balance -572,742 -570,162 -570,390
 of payments basis
 Services -111,197 -110,354 -112,460
 Income payments -139,905 -140,730 -139,445
Unilateral current transfers, net -31,906 -33,143 -34,488
 U.S. government grants -10,882 -11,061 -11,361
 U.S. government pensions 668 -756 -1,619
 and other transfers
 Private remittances -21,692 -21,327 -21,508
 and other transfers

Capital account

Capital account transactions, net 7,668 -40 -227

Financial account

U.S.-owned assets abroad -115,996 -229,070 -106,201
 (increase/financial
 outflow (-)) (1)
 U.S. official reserve assets 895 -876 191
 U.S. government assets, 2,388 -446 3,115
 other than official
 reserve assets
 U.S. private assets -119,279 -227,748 -109,507
 Direct investment -95,418 -84,122 -97,004
 Foreign securities -72,996 -133,783 -79,359
 U.S. claims on 18,334 -22,437 -59,730
 unaffiliated foreigners
 reported by
 nonbanking concerns
 U.S. claims reported 30,801 12,594 126,586
 by banks and brokers
Foreign-owned assets in 242,401 265,544 168,191
 the United States
 (increase/financial
 inflow (+)) (1)
 Foreign official assets 84,396 126,871 -6,577
 in the United States
 Other foreign assets 158,005 138,673 174,768
 in the United States
 Direct investment 42,292 28,624 40,556
 U.S. Treasury securities 33,515 50,780 -6,065
 U.S. securities other
 than U.S. Treasury 143,494 -10,970 -43,203
 securities
 U.S. currency 15,812 4,957 9,486
 U.S. liabilities to -22,440 -20,872 18,850
 unaffiliated
 foreigners reported
 by nonbanking concerns
 U.S. liabilities reported -54,668 86,154 155,144
 by banks and brokers
Financial derivatives, net 2,985 3,948 3,511
Statistical discrepancy
 (sum of the bold lines -34,738 64,513 31,339
 above with sign reversed)

Memoranda:

Balance on goods -182,403 -179,457 -175,736
Balance on services 55,025 56,824 57,614
Balance on goods and services -127,378 -122,633 -118,122
Balance on income 56,965 50,881 55,997
Unilateral current transfers, net -31,906 -33,143 -34,488
Balance on current account -102,320 -104,895 -96,613
Net financial flows (4) 129,390 40,422 65,501

(Credits +; debits -) 2013 Change
 2013:II to
 2013:III

 III (p)

Current account

Exports of goods and 765,110 4,940
 services and income
 receipts
 Goods, balance of 397,602 2,949
 payments basis
 Services 170,920 846
 Income receipts 196,588 1,145
Imports of goods and -825,850 -3,555
 services and income payments
 Goods, balance -576,232 -5,842
 of payments basis
 Services -113,028 -568
 Income payments -136,590 2,855
Unilateral current transfers, net -34,100 388
 U.S. government grants -12,260 -899
 U.S. government pensions -984 635
 and other transfers
 Private remittances -20,856 652
 and other transfers

Capital account

Capital account transactions, net n.a. n.a.

Financial account

U.S.-owned assets abroad -74,295 31,906
 (increase/financial
 outflow (-)) (1)
 U.S. official reserve assets 1,001 810
 U.S. government assets, 850 -2,265
 other than official
 reserve assets
 U.S. private assets -76,146 33,361
 Direct investment -95,813 1,191
 Foreign securities -47,391 31,968
 U.S. claims on 4,290 64,020
 unaffiliated foreigners
 reported by
 nonbanking concerns
 U.S. claims reported 62,768 -63,818
 by banks and brokers
Foreign-owned assets in 148,154 -20,037
 the United States
 (increase/financial
 inflow (+)) (1)
 Foreign official assets 68,514 75,091
 in the United States
 Other foreign assets 79,640 -95,128
 in the United States
 Direct investment 44,177 3,621
 U.S. Treasury securities 63,414 69,479
 U.S. securities other
 than U.S. Treasury 131,648 174,851
 securities
 U.S. currency 12,664 3,178
 U.S. liabilities to -60,786 -79,636
 unaffiliated
 foreigners reported
 by nonbanking concerns
 U.S. liabilities reported -111,477 -266,621
 by banks and brokers
Financial derivatives, net -6,569 -10,080
Statistical discrepancy
 (sum of the bold lines (2) 27,550 (3) -38,742
 above with sign reversed)

Memoranda:

Balance on goods -178,630 -2,894
Balance on services 57,892 278
Balance on goods and services -120,738 -2,616
Balance on income 59,998 4,001
Unilateral current transfers, net -34,100 388
Balance on current account -94,840 1,773
Net financial flows (4) 67,290 1,789

(p) Preliminary (r) Revised n.a. Not available

1. Excludes transactions in financial derivatives.

2. Excludes capital account transactions.

3. Change from prior period, not the sum of changes in components.

4. Sum of U.S.-owned assets abroad, foreign-owned assets
in the United States, and financial derivatives.

NOTE. The statistics, except for net financial flows,
are presented in table 1 in this article and on
BEA's Web site.

Table B. Goods Exports

[Millions of dollars, seasonally adjusted]

 2012 2013

 IV I II (r)

 Exports, balance of 390,339 390,705 394,653
 payments basis
 Agricultural products 36,122 36,188 33,146
 Nonagricultural products 354,216 354,517 361,507
Foods, feeds, and beverages 33,264 33,108 29,882
 Grains and preparations 7,096 7,667 6,823
 Soybeans 6,379 5,163 2,795
 Other 19,789 20,278 20,264
Industrial supplies and materials 128,564 131,186 129,059
 Petroleum and products 37,011 34,251 35,750
 Nonpetroleum products 91,553 96,935 93,309
 Chemicals, excluding medicinals 29,085 30,685 29,961
 Metals and nonmetallic products 31,318 33,810 30,817
 Steelmaking materials 2,774 3,341 2,312
 Nonferrous metals 17,453 19,261 17,326
 Other 11,091 11,208 11,179
 Other 31,150 32,440 32,531
Capital goods, except automotive 131,599 130,935 135,003
 Electric generating 13,443 13,688 13,560
 machinery, apparatus,
 and parts
 Oil drilling, mining, 8,619 8,686 8,131
 and construction machinery
 Industrial engines, 7,423 7,014 7,278
 pumps, and compressors
 Industrial, agricultural, 31,711 31,847 32,528
 and service machinery, n.e.c.
 Computers, peripherals, 11,813 12,108 12,092
 and parts
 Semiconductors 10,492 10,422 10,721
 Telecommunications equipment 9,896 9,801 10,175
 Civilian aircraft, 24,507 23,925 26,881
 engines, and parts
 Other 13,695 13,444 13,637
Automotive vehicles, 36,189 36,645 38,420
 parts, and engines
 Passenger cars 13,620 13,703 14,352
 Trucks, buses, and 4,762 5,196 5,352
 special purpose vehicles
 Engines, parts, and accessories 17,808 17,746 18,716
Consumer goods, except automotive 46,024 45,674 49,047
 Nondurable goods 21,194 20,720 21,402
 Medicinal, dental, and 12,480 11,909 12,515
 pharmaceutical products
 Other 8,714 8,811 8,887
 Durable goods 24,830 24,954 27,645
 Gems, jewelry, 4,725 4,501 6,288
 and collectibles
 Other 20,105 20,453 21,357
Other exports 14,699 13,157 13,242

 2013 Change
 2013:II
 to 2013:III

 III (p)

 Exports, balance of 397,602 2,949
 payments basis
 Agricultural products 35,344 2,198
 Nonagricultural products 362,258 751
Foods, feeds, and beverages 32,302 2,420
 Grains and preparations 7,612 789
 Soybeans 3,525 730
 Other 21,165 901
Industrial supplies and materials 132,388 3,329
 Petroleum and products 40,779 5,029
 Nonpetroleum products 91,609 -1,700
 Chemicals, excluding medicinals 30,069 108
 Metals and nonmetallic products 29,393 -1,424
 Steelmaking materials 2,404 92
 Nonferrous metals 15,714 -1,612
 Other 11,275 96
 Other 32,147 -384
Capital goods, except automotive 134,263 -740
 Electric generating 13,466 -94
 machinery, apparatus,
 and parts
 Oil drilling, mining, 7,405 -726
 and construction machinery
 Industrial engines, 7,457 179
 pumps, and compressors
 Industrial, agricultural, 31,477 -1,051
 and service machinery, n.e.c.
 Computers, peripherals, 11,916 -176
 and parts
 Semiconductors 10,862 141
 Telecommunications equipment 9,712 -463
 Civilian aircraft, 28,306 1,425
 engines, and parts
 Other 13,662 25
Automotive vehicles, 38,722 302
 parts, and engines
 Passenger cars 14,046 -306
 Trucks, buses, and 5,286 -66
 special purpose vehicles
 Engines, parts, and accessories 19,391 675
Consumer goods, except automotive 46,310 -2,737
 Nondurable goods 20,936 -466
 Medicinal, dental, and 12,020 -495
 pharmaceutical products
 Other 8,916 29
 Durable goods 25,374 -2,271
 Gems, jewelry, 4,502 -1,786
 and collectibles
 Other 20,872 -485
Other exports 13,617 375

(p) Preliminary (r) Revised
n.e.c. Not elsewhere classified

Note. The statistics are presented in table 2 after this article
and on BEA's Web site.

Table C. Growth in Real Goods Exports and Imports

[Percent change from preceding period in chained-dollar
exports and imports, seasonally adjusted]

 2012 2013

 II III IV I II (r) III (p)

Exports, balance 1.1 -0.1 -0.6 -0.2 2.2 0.6
 of payments basis
Imports, balance 0.7 0.1 -0.7 -0.6 1.6 0.9
 of payments basis

(p) Preliminary (r) Revised

NOTE. Real goods exports and imports are calculated
using price indexes from "Table 4.2.4. Indexes for Exports
and Imports of Goods and Services by Type of Product" of
the national income and product accounts.

Table D. Goods Imports

[Millions of dollars, seasonally adjusted]

 2012 2013

 IV I II (r)

 Imports, balance of 572,742 570,162 570,390
 payments basis
 Petroleum and products 103,536 100,983 93,687
 Nonpetroleum products 469,206 469,179 476,702
Foods, feeds, and beverages 27,863 28,698 29,249
Industrial supplies and materials 183,226 181,751 173,182
 Petroleum and products 103,536 100,983 93,687
 Nonpetroleum products 79,690 80,768 79,495
 Natural gas 2,830 3,189 3,410
 Chemicals, excluding medicinals 18,871 19,907 19,293
 Building materials, except metals 5,867 6,387 6,459
 Metals and nonmetallic products 31,699 31,523 29,725
 Iron and steel products 9,705 9,277 9,014
 Nonferrous metals 14,670 15,026 13,644
 Other 7,324 7,220 7,067
 Other 20,423 19,762 20,608
Capital goods, except automotive 137,683 137,197 137,423
 Electric generating machinery, 16,067 16,562 16,641
 apparatus, and parts
 Oil drilling, mining, and 6,556 5,888 5,635
 construction machinery
 Industrial engines, pumps, 5,740 5,310 5,441
 and compressors
 Industrial, agricultural, and 32,237 33,047 33,222
 service machinery, n.e.c.
 Computers, peripherals, and parts 30,966 30,096 29,133
 Semiconductors 9,677 9,759 10,520
 Telecommunications equipment 13,307 13,714 13,704
 Scientific, hospital, 9,357 9,449 9,500
 and medical equipment
 Civilian aircraft, 11,296 11,022 11,177
 engines, and parts
 Other 2,480 2,350 2,450
Automotive vehicles, parts, and engines 75,297 73,003 77,024
 Passenger cars 37,551 36,013 38,576
 Trucks, buses, and special 5,829 5,547 6,022
 purpose vehicles
 Engines, parts, and accessories 31,918 31,443 32,426
Consumer goods, except automotive 131,693 131,764 134,434
 Nondurable goods 59,739 61,430 61,081
 Apparel, footwear, and 32,056 33,351 32,497
 household goods
 Medicinal, dental, and 20,668 20,977 21,363
 pharmaceutical products
 Other 7,015 7,102 7,221
Durable goods 71,954 70,334 73,353
 Televisions and other 8,181 8,065 7,303
 video equipment
 Toys and sporting goods, 9,200 9,524 8,412
 including bicycles
 Household appliances and 37,567 35,533 39,571
 other household goods
 Other 17,006 17,212 18,067
Other imports and 16,980 17,749 19,078
 U.S. goods returned

 2013 Change
 2013:II
 to 2013:III

 III (p)

 Imports, balance of 576,232 5,842
 payments basis
 Petroleum and products 98,088 4,401
 Nonpetroleum products 478,144 1,442
Foods, feeds, and beverages 28,999 -250
Industrial supplies and materials 175,689 2,507
 Petroleum and products 98,088 4,401
 Nonpetroleum products 77,601 -1,894
 Natural gas 2,945 -465
 Chemicals, excluding medicinals 18,591 -702
 Building materials, except metals 6,345 -114
 Metals and nonmetallic products 28,925 -800
 Iron and steel products 9,133 119
 Nonferrous metals 12,714 -930
 Other 7,078 11
 Other 20,795 187
Capital goods, except automotive 139,725 2,302
 Electric generating machinery, 16,814 173
 apparatus, and parts
 Oil drilling, mining, and 5,412 -223
 construction machinery
 Industrial engines, pumps, 5,608 167
 and compressors
 Industrial, agricultural, and 33,628 406
 service machinery, n.e.c.
 Computers, peripherals, and parts 30,162 1,029
 Semiconductors 10,937 417
 Telecommunications equipment 13,765 61
 Scientific, hospital, 9,428 -72
 and medical equipment
 Civilian aircraft, 11,487 310
 engines, and parts
 Other 2,484 34
Automotive vehicles, parts, and engines 80,090 3,066
 Passenger cars 39,209 633
 Trucks, buses, and special 7,638 1,616
 purpose vehicles
 Engines, parts, and accessories 33,243 817
Consumer goods, except automotive 133,723 -711
 Nondurable goods 60,887 -194
 Apparel, footwear, and 32,589 92
 household goods
 Medicinal, dental, and 20,956 -407
 pharmaceutical products
 Other 7,342 121
Durable goods 72,836 -517
 Televisions and other 6,925 -378
 video equipment
 Toys and sporting goods, 8,881 469
 including bicycles
 Household appliances and 38,951 -620
 other household goods
 Other 18,079 12
Other imports and 18,007 -1,071
 U.S. goods returned

(p) Preliminary (r) Revised n.e.c. Not elsewhere classified

NOTE. The statistics are presented in table 2 in
this article and on BEA's Web site.

Table E. Services Exports and Imports

[Millions of dollars, seasonally adjusted]

 2012 2013

 IV I II (r)

 Services exports 166,222 167,178 170,074
Travel 32,523 33,911 34,632
Passenger fares 9,796 10,223 10,306
Other transportation 10,860 11,504 11,382
 Freight 5,412 5,698 5,687
 Port services 5,448 5,806 5,695
Royalties and license fees 31,336 31,666 32,256
Other private services 76,041 74,344 75,983
 Education 6,321 6,425 6,530
 Financial services 19,972 19,733 20,566
 Insurance services 4,080 3,825 3,797
 Telecommunications 3,572 3,517 3,559
 Business, professional, 39,540 38,279 38,897
 and technical services
 Other services 2,556 2,564 2,634
Transfers under U.S. 4,984 4,870 4,797
 military agency
 sales contracts
U.S. government 683 661 719
 miscellaneous services

 Services imports 111,197 110,354 112,460

Travel 20,643 21,122 21,531
Passenger fares 8,669 9,138 9,241
Other transportation 13,989 14,421 14,640
 Freight 10,551 10,975 11,157
 Port services 3,438 3,446 3,483
Royalties and license fees 9,854 10,454 10,249
Other private services 51,378 48,864 50,387
 Education 1,536 1,566 1,593
 Financial services 4,653 4,317 4,645
 Insurance services 13,625 12,435 12,505
 Telecommunications 2,035 1,870 1,993
 Business, professional, 29,166 28,304 29,280
 and technical services
 Other services 362 371 372
Direct defense expenditures 5,882 5,696 5,699
U.S. government 782 659 714
 miscellaneous services

 2013 Change
 2013:II to
 2013:III

 III (p)

 Services exports 170,920 846
Travel 35,165 533
Passenger fares 10,174 -132
Other transportation 11,052 -330
 Freight 5,441 -246
 Port services 5,611 -84
Royalties and license fees 32,666 410
Other private services 76,210 227
 Education 6,660 130
 Financial services 20,297 -269
 Insurance services 3,767 -30
 Telecommunications 3,466 -93
 Business, professional, 39,386 489
 and technical services
 Other services 2,633 -1
Transfers under U.S. 4,908 111
 military agency
 sales contracts
U.S. government 745 26
 miscellaneous services

 Services imports 113,028 568

Travel 21,547 16
Passenger fares 9,185 -56
Other transportation 14,899 259
 Freight 11,320 163
 Port services 3,579 96
Royalties and license fees 10,450 201
Other private services 50,717 330
 Education 1,610 17
 Financial services 4,660 15
 Insurance services 12,532 27
 Telecommunications 1,977 -16
 Business, professional, 29,565 285
 and technical services
 Other services 373 1
Direct defense expenditures 5,525 -174
U.S. government 706 -8
 miscellaneous services

NOTE. The statistics are presented in tables 1
and 3 after this article and on BEA's Web site.
For additional information on services, including
definitions, see Alexis Grimm and Charu Sharma,
U.S. International Services: Cross-Border Trade
in 2012 and Services Supplied Through Affiliates
in 2011, SURVEY OF CURRENT BUSINESS 93
(October 2013); 25-66.

Table F. Income Receipts and Payments

[Millions of dollars, seasonally adjusted]

 2012 2013

 IV I II (r)

 Income receipts 196,869 191,610 195,443
Income on U.S.-owned assets abroad 195,230 189,968 193,789
 Direct investment receipts 119,649 113,783 115,953
 Earnings 117,669 111,865 113,951
 Interest 1,980 1,917 2,002
 Other private receipts 75,201 75,704 77,418
 Income on foreign securities 67,390 68,056 70,053
 Dividends 42,747 42,180 43,426
 Interest 24,643 25,876 26,628
 Interest on claims reported 4,646 4,456 4,250
 by banks and brokers
 For own claims 4,127 4,009 3,834
 For customers' claims 519 447 416
 Interest on claims 3,165 3,193 3,115
 reported by nonbanking
 concerns
 U.S. government receipts 380 481 418
Compensation of employees 1,639 1,642 1,653
 Income payments 139,905 140,730 139,445
Income on foreign-owned 136,256 137,070 135,607
 assets in the United States
 Direct investment payments 43,961 44,629 43,305
 Earnings 37,589 38,378 37,287
 Interest 6,372 6,251 6,018
 Other private payments 60,993 61,403 62,083
 Income on U.S. corporate 56,347 57,060 58,067
 securities
 Dividends 27,147 26,979 27,400
 Interest 29,200 30,081 30,667
 Interest on liabilities 3,056 2,869 2,629
 reported by banks and brokers
 For own liabilities 1,883 1,725 1,604
 For customers' liabilities 1,173 1,144 1,024
 Interest on liabilities 1,590 1,474 1,388
 reported by nonbanking concerns
 U.S. government payments 31,302 31,038 30,219
Compensation of employees 3,649 3,660 3,838

 2013 Change
 2013:II to
 2013:III

 III (p)

 Income receipts 196,588 1,145
Income on U.S.-owned assets abroad 194,928 1,139
 Direct investment receipts 116,391 438
 Earnings 114,402 451
 Interest 1,989 -13
 Other private receipts 78,168 750
 Income on foreign securities 71,093 1,040
 Dividends 45,007 1,581
 Interest 26,086 -542
 Interest on claims reported 3,915 -335
 by banks and brokers
 For own claims 3,547 -287
 For customers' claims 368 -48
 Interest on claims 3,161 46
 reported by nonbanking
 concerns
 U.S. government receipts 369 -49
Compensation of employees 1,660 7
 Income payments 136,590 -2,855
Income on foreign-owned 132,753 -2,854
 assets in the United States
 Direct investment payments 40,250 -3,055
 Earnings 34,640 -2,647
 Interest 5,610 -408
 Other private payments 62,355 272
 Income on U.S. corporate 58,612 545
 securities
 Dividends 27,956 556
 Interest 30,657 -10
 Interest on liabilities 2,429 -200
 reported by banks and brokers
 For own liabilities 1,476 -128
 For customers' liabilities 952 -72
 Interest on liabilities 1,314 -74
 reported by nonbanking concerns
 U.S. government payments 30,148 -71
Compensation of employees 3,837 -1

(p) Preliminary (r) Revised

NOTE. The statistics are presented in tables
1, 4 and 7 after this article and on BEA's Web site.

Table G. U.S.-Owned Assets Abroad

[Millions of dollars, seasonally adjusted]

(Increase/financial outflow (-), 2012 2013
decrease/financial inflow (+))

 IV I II (r)

 U.S.-owned assets abroad (1) -115,996 -229,070 -106,201
U.S. official reserve assets 895 -876 191
U.S. government assets, 2,388 -446 3,115
 other than official
 reserve assets
U.S. private assets -119,279 -227,748 -109,507
 Direct investment -95,418 -84,122 -97,004
 Equity -3,039 852 -5,665
 Reinvested earnings -90,904 -79,739 -87,261
 Intercompany debt -1,474 -5,235 -4,078
Foreign securities -72,996 -133,783 -79,359
 Stocks -10,379 -73,830 -78,392
 Bonds -62,617 -59,953 -967
U.S. claims on unaffiliated 18,334 -22,437 -59,730
 foreigners reported by
 nonbanking concerns
U.S. claims reported by 30,801 12,594 126,586
 banks and brokers
 For own accounts 16,481 31,313 163,495
 For customers' accounts 14,320 -18,719 -36,909

(Increase/financial outflow (-), 2013 Change
decrease/financial inflow (+)) 2013:II to
 2013:III

 III (p)

 U.S.-owned assets abroad (1) -74,295 31,906
U.S. official reserve assets 1,001 810
U.S. government assets, 850 -2,265
 other than official
 reserve assets
U.S. private assets -76,146 33,361
 Direct investment -95,813 1,191
 Equity -13,583 -7,918
 Reinvested earnings -91,875 -4,614
 Intercompany debt 9,645 13,723
Foreign securities -47,391 31,968
 Stocks -22,964 55,428
 Bonds -24,427 -23,460
U.S. claims on unaffiliated 4,290 64,020
 foreigners reported by
 nonbanking concerns
U.S. claims reported by 62,768 -63,818
 banks and brokers
 For own accounts 57,403 -106,092
 For customers' accounts 5,365 42,274

(p) Preliminary (r) Revised

(1.) Excludes transactions in financial derivatives.

NOTE. Under balance-of-payments conventions, increases
in U.S.-owned assets abroad are shown with a negative
sign, and decreases are shown with a positive sign.
The statistics are presented in tables 1, 7, 8 and 10
in this article and on BEA's Web site.

Table H. Foreign-Owned Assets in the United States
[Millions of dollars, seasonally adjusted]

(Increase/financial inflow (+), 2012 2013
decrease/financial outflow (-))

 IV I II (r)

 Foreign-owned assets in the United
 States (1) 242,401 265,544 168,191
Foreign official assets 84,396 126,871 -6,577
 U.S. government securities 60,199 96,603 -23,558
 U.S. Treasury securities 93,271 118,533 -11,974
 Other -33,072 -21,930 -11,584
 Other U.S. government liabilities 807 1,608 3,546
 U.S. liabilities reported by 5,414 20,061 -9,354
 banks and brokers
 Other foreign official assets 17,976 8,599 22,789
Other foreign assets 158,005 138,673 174,768
 Direct investment 42,292 28,624 40,556
 Equity 36,083 13,090 10,534
 Reinvested earnings 28,306 25,591 31,916
 Intercompany debt -22,096 -10,057 -1,894
 U.S. Treasury securities 33,515 50,780 -6,065
 U.S. securities other than U.S.
 Treasury securities 143,494 -10,970 -43,203
 Stocks 94,701 -23,439 -47,098
 Corporate bonds 43,828 32,254 28,758
 Federally sponsored agency bonds 4,965 -19,785 -24,863
 U.S. currency 15,812 4,957 9,486
 U.S. liabilities to unaffiliated
 foreigners reported by -22,440 -20,872 18,850
 nonbanking concerns
 U.S. liabilities reported by banks -54,668 86,154 155,144
 and brokers
 For own accounts -68,090 89,152 175,207
 For customers' accounts 13,422 -2,998 -20,063

(Increase/financial inflow (+), 2013 Change 2013:II
decrease/financial outflow (-)) to 2013:III

 III (p)

 Foreign-owned assets in the United
 States (1) 148,154 -20,037
Foreign official assets 68,514 75,091
 U.S. government securities 35,193 58,751
 U.S. Treasury securities 15,972 27,946
 Other 19,221 30,805
 Other U.S. government liabilities 3,105 -441
 U.S. liabilities reported by 30,052 39,406
 banks and brokers
 Other foreign official assets 164 -22,625
Other foreign assets 79,640 -95,128
 Direct investment 44,177 3,621
 Equity 35,840 25,306
 Reinvested earnings 13,974 -17,942
 Intercompany debt -5,637 -3,743
 U.S. Treasury securities 63,414 69,479
 U.S. securities other than U.S.
 Treasury securities 131,648 174,851
 Stocks 58,605 105,703
 Corporate bonds 71,723 42,965
 Federally sponsored agency bonds 1,320 26,183
 U.S. currency 12,664 3,178
 U.S. liabilities to unaffiliated
 foreigners reported by -60,786 -79,636
 nonbanking concerns
 U.S. liabilities reported by banks -111,477 -266,621
 and brokers
 For own accounts -82,436 -257,643
 For customers' accounts -29,041 -8,978

(p) Preliminary (r) Revised

(1.) Excludes transactions in financial derivatives.

Note. The statistics are presented in tables 1, 7, 8 and 11 in
this article and on BEA's Web site.