U.S. international transactions: first quarter of 2014.

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, primary income (investment income and compensation), and secondary income (current transfers)--increased to $111.2 billion (preliminary) in the first quarter of 2014 from $87.3 billion (revised) in the fourth quarter of 2013 (see chart 1 and pages 3-6). (1) The deficit increased to 2.6 percent of current-dollar gross domestic product (GDP) from 2.0 percent in the fourth quarter. The increase largely reflected an increase in the deficit on goods and a decrease in the surplus on primary income. In addition, the deficit on secondary income increased and the surplus on services decreased.

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Net U.S. borrowing measured by financial-account transactions was $77.5 billion in the first quarter, down from $143.5 billion in the fourth quarter of 2013. The statistical discrepancy was $33.7 billion in the first quarter compared with -$56.1 billion in the fourth quarter.

Overview

Current-account highlights

* The deficit on goods increased to $182.3 billion in the first quarter from $169.1 billion in the fourth quarter (table A).

* The surplus on services decreased to $55.5 billion from $56.6 billion.

* The surplus on primary income decreased to $46.7 billion from $54.6 billion.

* The deficit on secondary income increased to $31.0 billion from $29.5 billion.

Capital-account highlights

* The capital-account deficit was $0.02 billion in the first quarter, up from a deficit near zero in the fourth quarter.

Financial-account highlights

* Net U.S. acquisition of financial assets excluding financial derivatives was $144.9 billion in the first quarter, down from $195.5 billion in the fourth quarter (see chart 9 on page 7).

* Net U.S. incurrence of liabilities to foreigners excluding financial derivatives was $229.8 billion, down from $341.8 billion.

* Net transactions in financial derivatives were $7.5 billion after net transactions of $2.9 billion.

Current Account--Goods Exports

In the first quarter, goods exports decreased to $399.7 billion from $407.1 billion in the fourth quarter (table B). Exports decreased in five of the six major general-merchandise end-use categories. The largest decreases were in industrial supplies and materials and in foods, feeds, and beverages. Most of the decrease in industrial supplies and materials reflected a decrease in exports of petroleum and products, much of that in fuel oil. The decrease in foods, feeds, and beverages was more than accounted for by a decrease in exports of soybeans.

The decrease in aggregate exports followed four quarters of increases (chart 2). In the first quarter, exports to Canada and China both decreased more than $3 billion (chart 3).

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Current Account--Goods Imports

In the first quarter, goods imports increased to $582.0 billion from $576.2 billion in the fourth quarter (table C). Imports increased in four of the six major general-merchandise end-use categories. The largest increase was in industrial supplies and materials, largely reflecting increases in petroleum and products, mainly in crude oil, and in metals and nonmetallic products. The largest decrease was in a decrease in automotive vehicles, parts, and engines that was more than accounted for by a decrease in passenger cars.

Imports of goods increased for the fourth straight quarter (chart 2 on page 3). Chart 4 shows imports of goods from selected trading partners over recent quarters.

The deficit on petroleum and products increased to $58.2 billion in the first quarter and the deficit on non-petroleum products increased to $124.1 billion (chart 5).

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Current Account--Services

In the first quarter, services exports decreased to $174.3 billion from $174.6 billion in the fourth quarter, a 0.2 percent decrease (table D and chart 6). Decreases in five of the nine major services categories more than offset increases in the other four. Decreases in three major categories--financial services, other business services, and government goods and services n.i.e.--were each larger than the total decrease in services exports. The decrease in financial services was more than accounted for by a decrease in financial management, financial advisory, and custody services. The decrease in other business services was more than accounted for by a decrease in technical, trade-related, and other business services.

Services imports increased to $118.8 billion from $117.9 billion, a 0.7 percent increase. Five of the nine major services categories increased. The increase in services imports was more than accounted for by an increase in charges for the use of intellectual property n.i.e., reflecting payments for the rights to broadcast the 2014 Winter Olympic Games.

Chart 7 shows services trade with selected trading partners over recent quarters.

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Current Account--Income

In the first quarter, income receipts from foreigners on U.S. holdings of financial assets decreased to $196.5 billion from $198.8 billion in the fourth quarter (table E and chart 8). The decrease was more than accounted for by a decrease in direct investment income receipts, particularly receipts from holding company affiliates. The decrease in direct investment income was partly offset by an increase in portfolio investment income.

Receipts for compensation of U.S. residents paid by nonresidents remained at $1.7 billion in the first quarter.

Income payments to foreigners on U.S. liabilities increased to $147.7 billion from $141.9 billion. The increase reflected increases in both portfolio and direct investment income payments. For portfolio investment income, much of the increase was accounted for by payments on equity, particularly by nonfinancial institutions. For direct investment income, the increase was mostly accounted for by earnings of U.S. affiliates in petroleum-related industries.

Payments for compensation of foreign residents paid by U.S. residents decreased to $3.8 billion from $4.0 billion.

Secondary income receipts decreased to $31.1 billion from $31.9 billion, reflecting decreases in receipts resulting from class action lawsuits (a component of private transfers) and from fines and penalties (a component of U.S. government transfers).

Secondary income payments increased to $62.1 billion from $61.4 billion, reflecting an increase in U.S. government grants.

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Financial Account--U.S. Acquisition of Financial Assets

Net acquisition of direct investment assets was $60.2 billion in the first quarter, down from $104.3 billion in the fourth quarter (table F and chart 10). The decrease mostly reflected lower net equity investment than in the fourth quarter, some of which was due to less reinvestment of earnings. Net acquisition of (intercompany) debt instruments was also lower.

Net U.S. acquisition of portfolio investment assets abroad (acquisitions in excess of sales) was $96.5 billion, down from $155.9 billion (chart 11). Net U.S. purchases of foreign equity and investment fund shares declined to $82.6 billion from $95.4 billion. Net U.S. purchases of foreign debt securities decreased to $13.8 billion from $60.4 billion, reflecting decreases in net purchases of corporate bonds and notes and short-term negotiable certificates of deposits.

Net U.S. sales of other investment assets abroad (sales in excess of acquisitions) were $10.8 billion, down from net sales of $62.0 billion (chart 12 on page 8). The decrease in net sales reflected a shift to net U.S. resident provision of loans to foreigners that more than offset an increase in net U.S. resident withdrawals of deposits abroad and a shift to net U.S. resident repayment of trade credit and advances.

Transactions in U.S. reserve assets decreased holdings $1.0 billion in the first quarter after decreasing holdings $2.8 billion in the fourth quarter. The lower net decrease represents lower repayments of International Monetary Fund lending in dollars to other countries, repayments which reduce the U.S. reserve position in the International Monetary Fund.

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Financial Account--U. S. Incurrence of Liabilities

Net repayment of direct investment liabilities to foreigners was $112.3 billion in the first quarter, a shift from net incurrence of liabilities of $97.2 billion in the fourth quarter (table G and chart 10). Net repayment of direct investment liabilities is an atypical occurrence; this was only the second instance since the start of this series in the first quarter of 1982. The repayment primarily reflected equity disinvestment other than reinvestment of earnings. In addition, transactions in intercompany debt liabilities shifted from net incurrence to net repayment.

Net U.S. incurrence of portfolio investment liabilities to foreigners was $235.6 billion, up from $153.2 billion (chart 11). Net foreign purchases of U.S. equity and investment fund shares were $93.4 billion, a shift from net foreign sales of $92.0 billion. Net foreign purchases of U.S. debt securities were $142.1 billion, down from $245.2 billion, primarily reflecting decreases in net foreign purchases of long-term U.S. Treasury securities and U.S. Treasury bills and certificates.

Net U.S. incurrence of other investment liabilities to foreigners was $106.6 billion, up from $91.5 billion (chart 12). The first-quarter increase resulted from combined changes in transactions for loans, currency, and trade credit and advances that more than offset a shift to net foreign resident withdrawals of deposits. For loans, first-quarter net U.S. incurrence rose. Net shipments of U.S. currency to foreigners and net U.S. incurrence of trade credit and advances also rose.

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Comprehensive Restructuring of the U.S. International Economic Accounts

With the June 2014 release of these data, Bureau of Economic Analysis (BEA) introduced a new presentation of the international transactions accounts as part of the comprehensive restructuring of BEA's international economic accounts. This change in presentation enhances the quality and usefulness of the accounts for customers and brings the statistics into closer alignment with international guidelines.

This new presentation eliminates the balance of payments sign convention that uses negative signs for debit entries. Positive signs are used to show exports and imports, income receipts and payments, transfers made and received, and acquisitions of assets and incurrences of liabilities. Negative signs specify negative income (losses) and sales of assets or repayment of liabilities. As in the old presentation, current-account and capital-account balances indicate the difference between underlying gross credit and debit flows (for example, exports less imports). For the financial account, net lending or net borrowing is calculated as the difference between the net acquisition of assets and the net incurrence of liabilities.

For additional information, see Maria Borga and Kristy L. Howell, "The Comprehensive Restructuring of the International Economic Accounts: Changes in Definitions, Classifications, and Presentations," Survey of Current Business 94 (March 2014); additional details about the restructuring are available on BEA's Web site at www.bea.gov/international/modern.htm. See also "Comprehensive Restructuring and Annual Revision of the U.S. International Transactions Accounts" in this issue.

Data Availability and Methodology

Detailed statistics for U.S. international transactions in tables 1.1-9.1 accompany 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 Methods.

Revisions

The preliminary statistics for U.S. international transactions for the fourth quarter of 2013 that were published in the April 2014 Survey of Current Business have been revised to incorporate newly available and revised source data, updated seasonal adjustments, changes in classifications, and improved estimation methodologies. For more information, see "Comprehensive Restructuring and Annual Revision of the U.S. International Transactions Accounts" in this issue.

Preliminary and Revised Fourth-Quarter 2013 Statistics
[Millions of dollars, seasonally adjusted]

                                           Preliminary     Revised

Balance on goods                              -171,833    -169,090
Balance on services                             57,917      56,642
Balance on primary income                       64,393      54,639
Balance on secondary income (current
  transfers)                                   -31,595     -29,508
Balance on current account                     -81,118     -87,317
Net U.S. acquisition of financial assets       148,591     195,454
Net U.S. incurrence of liabilities             325,025     341,838
Net lending/borrowing from financial-
  account transactions                        -173,694    -143,455

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

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

                                                          2013

                                                   II (r)    III (r)
                Current account

Exports of goods and services and income
    receipts (credits)                            786,909    796,943
  Exports of goods and services                   565,335    570,756
    Goods                                         394,988    398,088
    Services                                      170,347    172,668
  Primary income receipts                         193,497    196,002
  Secondary income (current transfer) receipts     28,078     30,184
Imports of goods and services and income
    payments (debits)                             893,055    898,247
  Imports of goods and services                   687,134    691,953
    Goods                                         572,071    576,024
    Services                                      115,063    115,929
  Primary income payments                         145,990    144,478
  Secondary income (current transfer) payments     59,931     61,816

                 Capital account

Capital transfer receipts and other credits             0          0
Capital transfer payments and other debits            227        146

               Financial account

Net U.S. acquisition of financial assets
    excluding financial derivatives (net
    increase in assets / financial outflow (+))   143,657     83,999
  Direct investment assets                        120,947    105,008
  Portfolio investment assets                     115,004     61,121
  Other investment assets                         -92,105    -81,129
  Reserve assets                                     -189     -1,001
Net U.S. incurrence of liabilities excluding
    financial derivatives (net increase in
    liabilities / financial inflow (+))           224,716    165,707
  Direct investment liabilities                    82,156     71,130
  Portfolio investment liabilities                -25,746    207,881
  Other investment liabilities                    168,307    -113,303
Financial derivatives other than reserves, net
  transactions                                     -3,302      6,569

            Statistical discrepancy

Statistical discrepancy (1)                        22,011     26,311

                   Balances

Balance on current account                        -106,146   -101,305
  Balance on goods and services                   -121,799   -121,197
    Balance on goods                              -177,083   -177,936
    Balance on services                            55,284     56,739
  Balance on primary income                        47,507     51,524
  Balance on secondary income (current
    transfers)                                    -31,854    -31,632
Balance on capital account                           -227       -146
Net lending (+) or net borrowing (-) from
  current- and capital-account transactions (2)   -106,372   -101,450
Net lending (+) or net borrowing (-) from
  financial-account transactions (3)              -84,362    -75,140

                                                    2013       2014

                                                   IV (r)     I (p)
                Current account

Exports of goods and services and income
    receipts (credits)                            814,014    803,262
  Exports of goods and services                   581,692    573,989
    Goods                                         407,103    399,680
    Services                                      174,589    174,309
  Primary income receipts                         200,446    198,198
  Secondary income (current transfer) receipts     31,876     31,075
Imports of goods and services and income
    payments (debits)                             901,330    914,418
  Imports of goods and services                   694,140    700,804
    Goods                                         576,193    581,998
    Services                                      117,947    118,806
  Primary income payments                         145,806    151,496
  Secondary income (current transfer) payments     61,384     62,118

                 Capital account

Capital transfer receipts and other credits             0          0
Capital transfer payments and other debits            (*)         20

               Financial account

Net U.S. acquisition of financial assets
    excluding financial derivatives (net
    increase in assets / financial outflow (+))   195,454    144,923
  Direct investment assets                        104,296     60,155
  Portfolio investment assets                     155,892     96,491
  Other investment assets                         -61,952    -10,767
  Reserve assets                                   -2,782       -956
Net U.S. incurrence of liabilities excluding
    financial derivatives (net increase in
    liabilities / financial inflow (+))           341,838    229,833
  Direct investment liabilities                    97,161    -112,333
  Portfolio investment liabilities                153,226    235,562
  Other investment liabilities                     91,451    106,605
Financial derivatives other than reserves, net
  transactions                                      2,929      7,459

            Statistical discrepancy

Statistical discrepancy (1)                       -56,138     33,725

                   Balances

Balance on current account                        -87,317    -111,156
  Balance on goods and services                   -112,448   -126,815
    Balance on goods                              -169,090   -182,317
    Balance on services                            56,642     55,503
  Balance on primary income                        54,639     46,702
  Balance on secondary income (current
    transfers)                                    -29,508    -31,043
Balance on capital account                                       -20
Net lending (+) or net borrowing (-) from
  current- and capital-account transactions (2)   -87,317    -111,176
Net lending (+) or net borrowing (-) from
  financial-account transactions (3)              -143,455   -77,452

                                                    Change
                                                   2013:IV
                                                  to 2014:1
                Current account

Exports of goods and services and income
    receipts (credits)                              -10,752
  Exports of goods and services                      -7,703
    Goods                                            -7,423
    Services                                           -280
  Primary income receipts                            -2,248
  Secondary income (current transfer) receipts         -801
Imports of goods and services and income
    payments (debits)                                13,088
  Imports of goods and services                       6,664
    Goods                                             5,805
    Services                                            859
  Primary income payments                             5,690
  Secondary income (current transfer) payments          734

                 Capital account

Capital transfer receipts and other credits               0
Capital transfer payments and other debits               20

               Financial account

Net U.S. acquisition of financial assets
    excluding financial derivatives (net
    increase in assets / financial outflow (+))     -50,531
  Direct investment assets                          -44,141
  Portfolio investment assets                       -59,401
  Other investment assets                            51,185
  Reserve assets                                      1,826
Net U.S. incurrence of liabilities excluding
    financial derivatives (net increase in
    liabilities / financial inflow (+))            -112,005
  Direct investment liabilities                    -209,494
  Portfolio investment liabilities                   82,336
  Other investment liabilities                       15,154
Financial derivatives other than reserves, net
  transactions                                        4,530

            Statistical discrepancy

Statistical discrepancy (1)                          89,863

                   Balances

Balance on current account                          -23,839
  Balance on goods and services                     -14,367
    Balance on goods                                -13,227
    Balance on services                              -1,139
  Balance on primary income                          -7,937
  Balance on secondary income (current
    transfers)                                       -1,535
Balance on capital account                              -20
Net lending (+) or net borrowing (-) from
  current- and capital-account transactions (2)     -23,859
Net lending (+) or net borrowing (-) from
  financial-account transactions (3)                 66,003

(p) Preliminary

(r) Revised

n.a. Not available

(*) between zero and [+ or -] $500,000

(1.) Calculated as the difference between net lending or net borrowing
as measured in the financial account and as measured in the current
and capital accounts.

(2.) Sum of current- 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. Goods Exports
[Millions of dollars, seasonally adjusted]

                                                     2013

                                         II (r)    III (r)     IV (r)

      Exports of goods                  394,988    398,088    407,103
General merchandise                     385,325    389,954    401,300
  Foods, feeds, and beverages            31,192     33,292     37,797
    Grains and preparations               6,944      7,661      8,090
    Soybeans                              3,851      4,514      8,665
    Other foods, feeds, and beverages    20,397     21,117     21,042
  Industrial supplies and materials     119,474    123,932    128,833
    Petroleum and products               35,718     40,313     44,158
      Of which: Fuel oil                 17,452     19,820     19,753
    Nonpetroleum products                83,756     83,619     84,675
      Chemicals except medicinals        29,947     29,689     30,188
      Metals and nonmetallic products    21,373     21,849     22,306
        Nonferrous metals                 7,904      8,149      8,132
        Other metals and nonmetallic
          products                       13,469     13,700     14,174
      Other nonpetroleum products        32,436     32,081     32,181
  Capital goods except automotive       134,781    133,946    134,877
    Electric-generating machinery,
      electric apparatus, and parts      13,593     13,542     13,667
    Oil-drilling, mining, and
      construction machinery              8,170      7,487      7,554
    Industrial engines, pumps, and
      compressors                         7,306      7,382      7,472
    Computers, peripherals, and parts    12,125     12,010     12,019
    Semiconductors                       10,716     10,809     10,933
    Telecommunications equipment         10,104      9,752     10,062
    Other machinery, equipment,
      tools, and instruments             44,407     43,800     44,809
    Civilian aircraft, engines, and
      parts                              26,679     27,685     26,659
    Other transportation equipment        1,680      1,478      1,701
  Automotive vehicles, parts, and
      engines                            38,327     38,710     38,593
    Passenger cars                       14,258     14,087     14,050
    Trucks, buses, and special
      purpose vehicles                    5,349      5,278      4,981
    Engines, parts, and accessories      18,719     19,345     19,562
  Consumer goods except food and
      automotive                         48,579     46,858     47,373
    Nondurable goods                     21,408     21,586     20,613
      Medicinal, dental, and
        pharmaceutical products          12,479     12,586     11,425
      Other                               8,929      9,000      9,188
    Durable goods                        27,171     25,272     26,759
      Household and kitchen
        appliances and other
        household goods                   9,568      9,759     10,204
      Gems, jewelry, and collectibles    11,585      9,489     10,457
      Other                               6,018      6,024      6,098
  Other general merchandise              12,973     13,216     13,828
Net exports of goods under
  merchanting                               169        150        149
Nonmonetary gold                          9,494      7,984      5,654

                                          2014       Change
                                                    2013:IV
                                         I (p)     to 2014:I

      Exports of goods                  399,680       -7,423
General merchandise                     392,684       -8,616
  Foods, feeds, and beverages            35,764       -2,033
    Grains and preparations               7,988         -102
    Soybeans                              6,494       -2,171
    Other foods, feeds, and beverages    21,282          240
  Industrial supplies and materials     123,150       -5,683
    Petroleum and products               38,785       -5,373
      Of which: Fuel oil                 15,842       -3,911
    Nonpetroleum products                84,365         -310
      Chemicals except medicinals        28,939       -1,249
      Metals and nonmetallic products    21,853         -453
        Nonferrous metals                 8,202           70
        Other metals and nonmetallic
          products                       13,651         -523
      Other nonpetroleum products        33,573        1,392
  Capital goods except automotive       134,523         -354
    Electric-generating machinery,
      electric apparatus, and parts      13,620          -47
    Oil-drilling, mining, and
      construction machinery              7,481          -73
    Industrial engines, pumps, and
      compressors                         7,040         -432
    Computers, peripherals, and parts    12,433          414
    Semiconductors                       10,931           -2
    Telecommunications equipment         10,260          198
    Other machinery, equipment,
      tools, and instruments             45,214          405
    Civilian aircraft, engines, and
      parts                              25,991         -668
    Other transportation equipment        1,552         -149
  Automotive vehicles, parts, and
      engines                            37,270       -1,323
    Passenger cars                       14,061           11
    Trucks, buses, and special
      purpose vehicles                    4,361         -620
    Engines, parts, and accessories      18,847         -715
  Consumer goods except food and
      automotive                         48,314          941
    Nondurable goods                     21,075          462
      Medicinal, dental, and
        pharmaceutical products          12,209          784
      Other                               8,866         -322
    Durable goods                        27,239          480
      Household and kitchen
        appliances and other
        household goods                   9,790         -414
      Gems, jewelry, and collectibles    11,576        1,119
      Other                               5,873         -225
  Other general merchandise              13,664         -164
Net exports of goods under
  merchanting                               167           18
Nonmonetary gold                          6,829        1,175

(p) Preliminary

(r) Revised

Note. The statistics are presented in table 2.1 on BEA's Web site.

Table C. Goods Imports
[Millions of dollars, seasonally adjusted]

                                                     2013

                                         II (r)     II (r)     IV (r)

    Imports of goods                    572,071    576,024    576,193
General merchandise                     567,376    571,971    572,027
  Foods, feeds, and beverages            29,276     28,986     29,143
  Industrial supplies and materials     170,269    171,747    167,653
    Petroleum and products               95,420     97,943     93,698
      Of which: Crude                    67,366     69,902     66,826
    Nonpetroleum products                74,849     73,804     73,955
      Natural gas                         3,131      2,696      2,992
      Chemicals except medicinals        19,334     18,688     18,696
      Building materials except
        metals                            6,434      6,391      6,695
      Metals and nonmetallic products    25,403     25,199     24,847
        Iron and steel products           9,028      9,167      9,398
        Nonferrous metals                 9,329      8,917      8,244
        Other                             7,046      7,115      7,205
      Other nonpetroleum products        20,547     20,830     20,725
  Capital goods except automotive       137,923    140,189    142,281
    Electric-generating machinery,
      electric apparatus, and parts      16,633     16,800     17,082
    Oil-drilling, mining, and
      construction machinery              5,636      5,390      5,493
    Industrial engines, pumps, and
      compressors                         5,506      5,605      5,692
    Computers, accessories,
      peripherals, and parts             29,452     30,263     31,435
    Semiconductors                       10,344     10,766     10,597
    Telecommunications equipment         13,668     13,673     13,353
    Other machinery, equipment,
      tools, and instruments             43,927     44,210     44,825
    Civilian aircraft, engines, and
      parts                              11,454     12,091     12,191
    Other transportation equipment        1,304      1,392      1,614
  Automotive vehicles, parts, and
      engines                            77,109     79,187     79,808
    Passenger cars                       38,476     38,983     39,145
    Trucks, buses, and special
      purpose vehicles                    6,169      7,163      7,114
    Engines, parts, and accessories      32,464     33,041     33,549
  Consumer goods except food and
      automotive                        133,686    133,757    135,414
    Nondurable goods                     60,953     61,119     61,518
      Apparel, footwear, and
        household goods                  32,358     32,812     33,600
      Medicinal, dental, and
        pharmaceutical products          21,382     20,973     20,597
      Other                               7,213      7,334      7,321
    Durable goods                        72,733     72,638     73,896
      Televisions and other video
        equipment                         7,399      6,900      6,572
      Toys and sporting goods,
        including bicycles                8,440      8,994      9,468
      Household and kitchen
        appliances and other
        household goods, including
        cell phones                      39,556     38,922     39,761
      Other                              17,338     17,822     18,095
  Other general merchandise              19,112     18,105     17,728
Nonmonetary gold                          4,695      4,053      4,166

                                          2014       Change
                                                    2013:IV
                                         I (p)     to 2014:1

    Imports of goods                    581,998        5,805
General merchandise                     578,178        6,151
  Foods, feeds, and beverages            30,106          963
  Industrial supplies and materials     174,822        7,169
    Petroleum and products               96,971        3,273
      Of which: Crude                    69,607        2,781
    Nonpetroleum products                77,851        3,896
      Natural gas                         3,950          958
      Chemicals except medicinals        19,567          871
      Building materials except
        metals                            6,655          -40
      Metals and nonmetallic products    27,222        2,375
        Iron and steel products          10,651        1,253
        Nonferrous metals                 8,708          464
        Other                             7,863          658
      Other nonpetroleum products        20,457         -268
  Capital goods except automotive       143,064          783
    Electric-generating machinery,
      electric apparatus, and parts      17,556          474
    Oil-drilling, mining, and
      construction machinery              5,474          -19
    Industrial engines, pumps, and
      compressors                         5,798          106
    Computers, accessories,
      peripherals, and parts             28,813       -2,622
    Semiconductors                       10,568          -29
    Telecommunications equipment         14,131          778
    Other machinery, equipment,
      tools, and instruments             46,400        1,575
    Civilian aircraft, engines, and
      parts                              12,782          591
    Other transportation equipment        1,543          -71
  Automotive vehicles, parts, and
      engines                            77,464       -2,344
    Passenger cars                       36,436       -2,709
    Trucks, buses, and special
      purpose vehicles                    7,536          422
    Engines, parts, and accessories      33,493          -56
  Consumer goods except food and
      automotive                        134,964         -450
    Nondurable goods                     63,175        1,657
      Apparel, footwear, and
        household goods                  34,056          456
      Medicinal, dental, and
        pharmaceutical products          21,746        1,149
      Other                               7,373           52
    Durable goods                        71,789       -2,107
      Televisions and other video
        equipment                         7,031          459
      Toys and sporting goods,
        including bicycles                9,546           78
      Household and kitchen
        appliances and other
        household goods, including
        cell phones                      37,483       -2,278
      Other                              17,729         -366
  Other general merchandise              17,758           30
Nonmonetary gold                          3,820         -346

(p) Preliminary

(r) Revised

Note. The statistics are presented in table 2.1 on BEA's Web site.

Table D. Services Exports and Imports
[Millions of dollars, seasonally adjusted]

                                                     2013

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

    Exports of services                 170,347    172,668    174,589
Maintenance and repair services
  n.i.e.                                  3,527      4,525      4,802
Transport                                21,879     21,335     22,180
  Of which: Air passenger transport      10,470     10,086     10,708
Travel (for all purposes including
    education)                           42,637     43,741     44,054
  Of which: Travel for purposes other
    than education, health, and
    short-term work                      33,325     34,143     34,471
Insurance services                        3,960      4,045      4,080
Financial services                       20,859     20,734     22,081
Charges for the use of intellectual
    property n.i.e.                      32,483     32,581     31,866
  Industrial processes                   11,074     11,066     11,517
  Computer software                      10,760     11,058     10,261
  Other                                  10,649     10,457     10,090
Telecommunications, computer, and
  information services                    8,427      8,396      8,303
Other business services                  30,352     30,970     31,570
Government goods and services n.i.e.      6,224      6,343      5,653
    Imports of services                 115,063    115,929    117,947
Maintenance and repair services
  n.i.e.                                  1,960      1,993      1,797
Transport                                22,477     22,521     23,299
  Of which: Air passenger transport       7,864      7,734      8,493
Travel (for all purposes including
    education)                           26,101     26,146     26,766
  Of which: Travel for purposes other
    than education, health, and
    short-term work                      23,828     23,843     24,448
Insurance services                       12,680     12,920     12,348
Financial services                        4,620      4,626      5,058
Charges for the use of intellectual
    property n.i.e.                       9,720      9,438      9,855
  Industrial processes                    5,605      5,325      5,729
  Computer software                       1,644      1,529      1,657
  Other                                   2,472      2,585      2,468
Telecommunications, computer, and
  information services                    8,322      8,295      8,415
Other business services                  22,787     23,633     24,183
Government goods and services n.i.e.      6,396      6,357      6,227

                                          2014       Change
                                                    2013:IV
                                         I (p)     to 2014:I

    Exports of services                 174,309         -280
Maintenance and repair services
  n.i.e.                                  4,610         -192
Transport                                22,385          205
  Of which: Air passenger transport      10,998          290
Travel (for all purposes including
    education)                           44,719          665
  Of which: Travel for purposes other
    than education, health, and
    short-term work                      35,041          570
Insurance services                        4,078           -2
Financial services                       21,387         -694
Charges for the use of intellectual
    property n.i.e.                      32,223          357
  Industrial processes                   11,605           88
  Computer software                      10,490          229
  Other                                  10,128           38
Telecommunications, computer, and
  information services                    8,426          123
Other business services                  31,136         -434
Government goods and services n.i.e.      5,346         -307
    Imports of services                 118,806          859
Maintenance and repair services
  n.i.e.                                  1,866           69
Transport                                23,070         -229
  Of which: Air passenger transport       8,497            4
Travel (for all purposes including
    education)                           26,994          228
  Of which: Travel for purposes other
    than education, health, and
    short-term work                      24,641          193
Insurance services                       12,104         -244
Financial services                        4,929         -129
Charges for the use of intellectual
    property n.i.e.                      10,779          924
  Industrial processes                    5,806           77
  Computer software                       1,651           -6
  Other                                   3,322          854
Telecommunications, computer, and
  information services                    8,470           55
Other business services                  24,518          335
Government goods and services n.i.e.      6,075         -152

(p) Preliminary

(r) Revised

n.i.e. Not included elsewhere

Note. The statistics are presented in table 3.1 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 E. Income Receipts and Payments
[Millions of dollars, seasonally adjusted]

                                                     2013

                                         II (r)    III (r)     IV (r)

      Primary income receipts           193,497    196,002    200,446
Investment income                       191,826    194,324    198,759
  Direct investment income              115,441    117,248    120,357
    Income on equity                    111,938    113,654    116,559
    Interest                              3,503      3,593      3,799
  Portfolio investment income            68,496     69,473     70,968
    Income on equity and investment
      fund shares                        42,350     43,934     44,703
    Interest on debt securities          26,146     25,540     26,264
  Other investment income                 7,786      7,525      7,368
    Interest                              5,333      5,051      4,892
    Income attributable to insurance
      policyholders                       2,453      2,474      2,476
  Reserve asset income                      103         78         66
Compensation of employees                 1,671      1,678      1,686

      Primary income payments           145,990    144,478    145,806
Investment income                       142,053    140,557    141,857
  Direct investment income               44,894     43,217     43,667
    Income on equity                     36,891     35,597     36,061
    Interest                              8,003      7,620      7,607
  Portfolio investment income            93,019     93,434     94,374
    Income on equity and investment
      fund shares                        27,210     27,701     27,435
    Interest on debt securities          65,809     65,733     66,939
  Other investment income                 4,140      3,905      3,815
    Interest                              3,408      3,173      3,082
    Income attributable to insurance
      policyholders                         732        732        733
Compensation of employees                 3,937      3,922      3,950

      Secondary income (1)
  Secondary income (current transfer)
    receipts                             28,078     30,184     31,876
  Secondary income (current transfer)
    payments                             59,931     61,816     61,384

                                          2014       Change
                                                    2013:IV
                                         I (p)     to 2014:I

      Primary income receipts           198,198       -2,248
Investment income                       196,491       -2,268
  Direct investment income              114,973       -5,384
    Income on equity                    111,368       -5,191
    Interest                              3,605         -194
  Portfolio investment income            74,293        3,325
    Income on equity and investment
      fund shares                        47,669        2,966
    Interest on debt securities          26,624          360
  Other investment income                 7,129         -239
    Interest                              4,617         -275
    Income attributable to insurance
      policyholders                       2,512           36
  Reserve asset income                       96           30
Compensation of employees                 1,707           21

      Primary income payments           151,496        5,690
Investment income                       147,652        5,795
  Direct investment income               45,526        1,859
    Income on equity                     36,739          678
    Interest                              8,787        1,180
  Portfolio investment income            98,747        4,373
    Income on equity and investment
      fund shares                        31,015        3,580
    Interest on debt securities          67,732          793
  Other investment income                 3,379         -436
    Interest                              2,625         -457
    Income attributable to insurance
      policyholders                         755           22
Compensation of employees                 3,844         -106

      Secondary income (1)
  Secondary income (current transfer)
    receipts                             31,075         -801
  Secondary income (current transfer)
    payments                             62,118          734

(p) Preliminary

(r) Revised

(1.) Secondary income receipts and 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 tables 4.1 and 5.1 on BEA's Web
site.

Table F. Net U.S. Acquisition of Financial Assets
[Millions of dollars, seasonally adjusted]

                                                     2013

                                         II (r)    III (r)     IV (r)

      Net U.S. acquisition of
        financial assets excluding
        financial derivatives           143,657     83,999    195,454
Direct investment assets                120,947    105,008    104,296
  Equity                                 87,046     99,586     86,087
    Equity other than reinvestment of
      earnings                            7,087     11,630     -4,721
    Reinvestment of earnings             79,960     87,957     90,808
  Debt instruments                       33,900      5,422     18,210
Portfolio investment assets             115,004     61,121    155,892
  Equity and investment fund shares      92,820     19,686     95,443
  Debt securities                        22,184     41,435     60,449
    Short-term securities                20,489     17,508    -14,913
    Long-term corporate securities        1,912     17,831     54,213
    Other long-term securities             -217      6,096     21,149
Other investment assets                 -92,105    -81,129    -61,952
  Currency and deposits                 -38,151    -37,055     -1,305
  Loans                                 -57,810    -44,021    -61,889
  Trade credit and advances               3,855        -53      1,242
Reserve assets                             -189     -1,001     -2,782
  Monetary gold                               0          0          0
  Special drawing rights                      6          5          6
  Reserve position in the
      International
    Monetary Fund                          -287     -1,071     -2,835
  Other reserve assets                       92         65         47

                                          2014       Change
                                                    2013:IV
                                         I (p)     to 2014:I

      Net U.S. acquisition of
        financial assets excluding
        financial derivatives           144,923      -50,531
Direct investment assets                 60,155      -44,141
  Equity                                 51,978      -34,109
    Equity other than reinvestment of
      earnings                          -24,649      -19,928
    Reinvestment of earnings             76,627      -14,181
  Debt instruments                        8,177      -10,033
Portfolio investment assets              96,491      -59,401
  Equity and investment fund shares      82,648      -12,795
  Debt securities                        13,843      -46,606
    Short-term securities               -13,486        1,427
    Long-term corporate securities       20,203      -34,010
    Other long-term securities            7,126      -14,023
Other investment assets                 -10,767       51,185
  Currency and deposits                 -49,733      -48,428
  Loans                                  50,750      112,639
  Trade credit and advances             -11,783      -13,025
Reserve assets                             -956        1,826
  Monetary gold                               0            0
  Special drawing rights                      8            2
  Reserve position in the
      International
    Monetary Fund                        -1,040        1,795
  Other reserve assets                       76           29

(p) Preliminary

(r) Revised

(-) Net sales

Note. The statistics are presented in tables 1.2, 6.1, 7.1, and 8.1 on
BEA's Web site.

Table G. Net U.S. Incurrence of Liabilities
[Millions of dollars, seasonally adjusted]

                                                    2013

                                        II (r)     III (r)     IV (r)
      Net U.S. incurrence of
        liabilities excluding
        financial derivatives          224,716     165,707    341,838
Direct investment liabilities           82,156      71,130     97,161
  Equity                                61,980      55,579     69,487
    Equity other than reinvestment
      of earnings                       31,657      38,158     42,385
    Reinvestment of earnings            30,323      17,421     27,102
  Debt instruments                      20,175      15,551     27,673
Portfolio investment liabilities       -25,746     207,881    153,226
  Equity and investment fund shares    -32,706      61,828    -91,980
  Debt securities                        6,960     146,052    245,207
    Short term                         -32,741     -52,805     63,085
    Long term                           39,701     198,857    182,122
      Treasury bonds and notes          27,435     108,976    157,938
      Federally sponsored agency
        securities                     -35,629      20,958    -35,667
      Corporate bonds and notes         45,680      67,825     57,438
      Other                              2,215       1,098      2,413
Other investment liabilities           168,307    -113,303     91,451
  Currency (short term)                  9,486      12,664     10,606
  Deposits                              94,470     -33,794     72,167
  Loans                                 61,347     -94,906      4,994
  Trade credit and advances              3,004       2,733      3,684
  Special drawing rights allocations         0           0          0

                                         2014        Change
                                                    2013:IV
                                          I (p)    to 2014:I
      Net U.S. incurrence of
        liabilities excluding
        financial derivatives           229,833     -112,005
Direct investment liabilities          -112,333     -209,494
  Equity                                -94,699     -164,186
    Equity other than reinvestment
      of earnings                      -120,625     -163,010
    Reinvestment of earnings             25,926       -1,176
  Debt instruments                      -17,635      -45,308
Portfolio investment liabilities        235,562       82,336
  Equity and investment fund shares      93,441      185,421
  Debt securities                       142,121     -103,086
    Short term                           10,850      -52,235
    Long term                           131,271      -50,851
      Treasury bonds and notes          118,248      -39,690
      Federally sponsored agency
        securities                      -26,464        9,203
      Corporate bonds and notes          38,037      -19,401
      Other                               1,450         -963
Other investment liabilities            106,605       15,154
  Currency (short term)                  25,169       14,563
  Deposits                              -26,765      -98,932
  Loans                                  97,688       92,694
  Trade credit and advances              10,513        6,829
  Special drawing rights allocations          0            0

(p) Preliminary

(r) Revised

(-) Net repayment

Note. The statistics are presented in tables 1.2, 6.1, 7.1, and
8.1 on BEA's Web site.