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News Release: U.S. International Transactions


The tables in this release are available in an XLS spreadsheet and the entire release is available in PDF format.

NOTE: This news release is available on BEA's Web site at <www.bea.gov/newsreleases/rels.htm>.

FOR WIRE TRANSMISSION: 8:30 A.M. EST, TUESDAY, DECEMBER 16, 2003
Christopher Bach:        (202) 606-9545                               BEA 03-51
Recorded Message:	       606-5362

             U.S. International Transactions: Third Quarter 2003

                               Current Account

           The U.S. current-account deficit--the combined balances on trade
in goods and services, income, and net unilateral current transfers--decreased
to $135.0 billion (preliminary) in the third quarter of 2003 from $139.4
billion (revised) in the second.  A decrease in the deficit on goods, increases
in the surpluses on services and on income, and a decrease in net outflows for
unilateral current transfers all contributed to the decline in the
current-account deficit.

Goods and services

        The deficit on goods and services decreased to $121.3 billion in the
third quarter from $124.2 billion in the second.

        Goods

        The deficit on goods decreased to $136.2 billion in the third quarter
from $138.1 billion in the second.

        Goods exports increased to $177.9 billion from $174.2 billion.
Agricultural and nonagricultural products both increased.  Among
nonagricultural products, the largest increase was in capital goods; consumer
goods also increased.

        Goods imports increased to $314.1 billion from $312.3 billion.  The
increase was almost completely accounted for by an increase in petroleum and
petroleum products.  The increase in petroleum and petroleum products was more
than accounted for by a rise in petroleum prices. Among nonpetroleum products,
increases in nonpetroleum industrial supplies and materials and in capital
goods were largely offset by a decrease in automotive vehicles, engines, and
parts.

        Services

        The surplus on services increased to $14.9 billion in the third quarter
from $13.9 billion in the second.

        Services receipts increased to $76.8 billion from $73.2 billion.  The
increase was largely accounted for by increases in travel and passenger fare
receipts; most other services categories also increased.

        Services payments increased to $61.9 billion from $59.3 billion.  The
increase was largely accounted for by increases in travel and passenger fare
payments; most other services categories also increased.

Income

        The surplus on income increased to $2.6 billion in the third quarter
from $1.7 billion in the second.

        Investment income

        Income receipts on U.S.-owned assets abroad increased to $66.5 billion
from $63.5 billion.  The increase was mostly accounted for by an increase in
direct investment receipts; "other" private receipts (which consists of
interest and dividends) also increased.

        Income payments on foreign-owned assets in the United States increased
to $62.7 billion from $60.5 billion.  The increase was almost entirely
accounted for by increases in "other" private payments (which consists of
interest and dividends) and in direct investment payments.

        Compensation of employees

        Receipts for compensation of U.S. workers abroad were virtually
unchanged at $0.8 billion.  Payments for compensation of foreign workers in the
United States decreased slightly to $2.0 billion from $2.1 billion.

Unilateral current transfers

        Unilateral current transfers were net outflows of $16.3 billion in the
third quarter, down from net outflows of $16.9 billion in the second.

                        Capital and Financial Account

                               Capital Account

        Capital account transactions were net outflows of $0.8 billion in the
third quarter, down from net outflows of $1.6 billion in the second.

                              Financial Account

        Net recorded financial inflows--net acquisitions by foreign residents
of assets in the United States less net acquisitions by U.S. residents of
assets abroad--were $123.3 billion in the third quarter, down from $150.0
billion in the second.  Financial inflows for foreign-owned assets in the
United States declined more than financial outflows for U.S.-owned assets
abroad.

U.S.-owned assets abroad

        U.S.-owned assets abroad increased $4.9 billion in the third quarter,
compared with an increase of $112.8 billion in the second.

        U.S. claims on foreigners reported by U.S. banks decreased $39.3
billion in the third quarter, in contrast to an increase of $72.8 billion in
the second.

        Transactions in foreign securities shifted to net U.S. purchases of
$28.8 billion in the third quarter from net U.S. sales of $8.7 billion in the
second.  Net U.S. purchases of foreign stocks were $30.1 billion, up from
$16.9 billion.  Net U.S. sales of foreign bonds were $1.2 billion, down from
$25.6 billion.

        Net financial outflows for U.S. direct investment abroad were $37.5
billion in the third quarter, up from $29.9 billion in the second.  A shift in
intercompany debt to net outflows from net inflows and an increase in
reinvested earnings more than offset a decrease in net equity capital outflows.

        U.S. official reserve assets increased $0.6 billion in the third
quarter, following an increase of $0.2 billion in the second.

Foreign-owned assets in the United States

        Foreign-owned assets in the United States increased $128.2 billion in
the third quarter, compared with an increase of $262.8 billion in the second.

        U.S. liabilities to foreigners reported by U.S. banks increased $7.1
billion in the third quarter, following an increase of $36.8 billion in the
second.

        Net foreign purchases of U.S. securities other than U.S. Treasury
securities were $9.6 billion in the third quarter, down from $86.0 billion in
the second.  Transactions in U.S. stocks shifted to net foreign sales of $3.5
billion from net foreign purchases of $20.6 billion.  Net foreign
purchases of U.S. corporate bonds were $57.5 billion, down from $67.2 billion,
and net foreign sales of federally sponsored agency bonds were $44.5 billion,
up from $1.8 billion.

        Net foreign purchases of U.S. Treasury securities were $49.9 billion
in the third quarter, down from $55.0 billion in the second. Net financial
inflows for foreign direct investment in the United States were $8.1 billion
in the third quarter, down from $22.4 billion in the second.  The decrease was
more than accounted for by a shift in intercompany debt to net outflows from
net inflows.  In contrast, reinvested earnings and net equity capital inflows
both increased.

        Foreign official assets in the United States increased $43.9 billion in
the third quarter, following an increase of $57.0 billion in the second.

        Net U.S. currency shipments were $2.8 billion in the third quarter, up
from $1.5 billion in the second.

        The statistical discrepancy--errors and omissions in recorded
transactions--was a positive $12.5 billion in the third quarter, compared with
a negative $9.1 billion in the second.

        In the third quarter, the U.S. dollar was unchanged on a trade-weighted
quarterly average basis against a group of 7 major currencies.

                                  Revisions

        The second-quarter international transactions estimates are revised
from previously published estimates.  The current-account deficit was revised
to $139.4 billion from $138.7 billion.  The goods deficit was revised to $138.1
billion from $138.0 billion; the services surplus was revised to $13.9 billion
from $14.6 billion; the income surplus was virtually unrevised at $1.7 billion;
and unilateral current transfers were virtually unrevised at net outflows of
$16.9 billion.  Net recorded financial inflows were revised to $150.0 billion
from $148.6 billion.

                            *         *         *

	Release dates in 2004:

        Fourth quarter and year 2003....................March 12, 2004 (Friday)
        First quarter 2004...............................June 18, 2004 (Friday)
        Second quarter 2004........................September 14, 2004 (Tuesday)
        Third quarter 2004.........................December 16, 2004 (Thursday)

                           *         *          *

        BEA's major national, regional, international, and industry estimates,
the Survey of Current Business, and BEA news releases are available on BEA's
Web site:

                              <www.bea.gov>

        Summary BEA estimates are available on recorded messages at the time
of public release at the following telephone numbers:

               (202) 606-5362 U.S. international transactions
                        -5306 Gross domestic product
                        -5303 Personal income and outlays

        Most of BEA's estimates and analyses are published in the Survey of
Current Business, BEA's monthly journal.  Subscriptions and single copies of
the printed Survey are for sale by the Superintendent of Documents, U.S.
Government Printing Office.  Internet: <bookstore.gpo.gov>; phone:
(202) 512-1800; fax: (202) 512-2250; mail: Stop SSOP, Washington, DC 20402-0001.

                                                                                                                                                                                           December 16, 2003


Table 1. U.S. International Transactions
[Millions of dollars, quarters seasonally adjusted]

                                                                                                         2002                                                2003                                  Change:
                                   (Credits +, debits -)                                    2002                                                                                                    2003
                                                                                                           I           II           III          IV            I           IIr         IIIp        II-III

                                     Current account

 1 Exports of goods and services and income receipts....................................   1,229,649      297,074      307,616      313,939      311,015      310,278      311,794      322,014       10,220

 2      Exports of goods and services...................................................     974,107      236,442      243,696      247,815      246,151      247,377      247,484      254,670        7,186

 3          Goods, balance of payments basis............................................     681,874      165,298      171,421      174,315      170,840      173,346      174,247      177,858        3,611

 4          Services....................................................................     292,233       71,144       72,275       73,500       75,311       74,031       73,237       76,812        3,575
 5              Transfers under U.S. military agency sales contracts....................      11,943        2,785        2,751        3,418        2,989        2,827        3,014        3,381          367

 6              Travel..................................................................      66,547       16,295       16,030       16,217       18,005       16,089       14,543       16,569        2,026
 7              Passenger fares.........................................................      17,046        4,224        4,279        4,288        4,255        3,736        3,456        4,059          603
 8              Other transportation....................................................      29,166        7,102        7,075        7,307        7,682        7,837        7,853        7,789          -64

 9               Royalties and license fees.............................................      44,142       10,373       11,221       11,389       11,157       11,630       11,944       12,155          211
10               Other private services.................................................     122,594       30,170       30,720       30,681       31,022       31,710       32,225       32,656          431
11               U.S. Government miscellaneous services.................................         795          195          199          200          201          202          202          203            1

12      Income receipts.................................................................     255,542       60,632       63,920       66,124       64,864       62,901       64,310       67,344        3,034
13           Income receipts on U.S.-owned assets abroad................................     252,379       59,821       63,140       65,339       64,077       62,094       63,496       66,524        3,028
14               Direct investment receipts.............................................     142,933       32,058       34,874       37,264       38,735       37,508       39,635       42,400        2,765
15               Other private receipts.................................................     106,143       26,950       27,560       27,225       24,408       23,700       22,620       22,882          262
16               U.S. Government receipts...............................................       3,303          813          706          850          934          886        1,241        1,242            1
17           Compensation of employees..................................................       3,163          811          780          785          787          807          814          820            6

18 Imports of goods and services and income payments....................................  -1,651,657     -387,864     -416,962     -422,666     -424,165     -431,716     -434,248     -440,736       -6,488

19      Imports of goods and services...................................................  -1,392,145     -326,499     -348,584     -354,795     -362,267     -369,006     -371,668     -375,987       -4,319

20          Goods, balance of payments basis............................................  -1,164,746     -271,331     -292,707     -297,627     -303,081     -309,364     -312,335     -314,090       -1,755

21          Services....................................................................    -227,399      -55,168      -55,877      -57,168      -59,186      -59,642      -59,333      -61,897       -2,564
22              Direct defense expenditures.............................................     -19,245       -4,394       -4,668       -4,990       -5,193       -5,674       -6,121       -5,900          221

23              Travel..................................................................     -58,044      -14,453      -14,252      -14,314      -15,025      -14,168      -12,895      -14,464       -1,569
24              Passenger fares.........................................................     -19,969       -4,874       -4,874       -4,829       -5,392       -4,960       -4,720       -5,335         -615
25              Other transportation....................................................     -38,527       -8,891       -9,580       -9,787      -10,271      -10,873      -11,249      -11,282          -33

26               Royalties and license fees.............................................     -19,258       -4,728       -4,902       -5,036       -4,592       -4,698       -4,697       -4,874         -177
27               Other private services.................................................     -69,436      -17,087      -16,876      -17,487      -17,984      -18,524      -18,902      -19,289         -387
28               U.S. Government miscellaneous services.................................      -2,920         -741         -725         -725         -729         -745         -749         -753           -4

29      Income payments.................................................................    -259,512      -61,365      -68,378      -67,871      -61,898      -62,710      -62,580      -64,749       -2,169
30           Income payments on foreign-owned assets in the United States...............    -251,108      -59,271      -66,246      -65,820      -59,771      -60,527      -60,461      -62,705       -2,244
31               Direct investment payments.............................................     -49,458       -8,134      -13,464      -15,350      -12,510      -15,431      -17,426      -18,419         -993
32               Other private payments.................................................    -127,735      -32,512      -33,773      -31,802      -29,648      -28,245      -26,769      -27,960       -1,191
33               U.S. Government payments...............................................     -73,915      -18,625      -19,009      -18,668      -17,613      -16,851      -16,266      -16,326          -60
34           Compensation of employees..................................................      -8,404       -2,094       -2,132       -2,051       -2,127       -2,183       -2,119       -2,044           75

35 Unilateral current transfers, net....................................................     -58,853      -15,938      -13,481      -13,997      -15,436      -17,269      -16,940      -16,319          621
36      U.S. Government grants..........................................................     -17,097       -6,397       -3,287       -3,075       -4,338       -5,813       -5,654       -5,309          345
37      U.S. Government pensions and other transfers....................................      -5,125       -1,271       -1,279       -1,282       -1,292       -1,320       -1,335       -1,328            7
38      Private remittances and other transfers.........................................     -36,631       -8,270       -8,915       -9,640       -9,806      -10,136       -9,951       -9,682          269

                                                                                                                                                                                           December 16, 2003
Table 1.--U.S. International Transactions (Continued)
[Millions of dollars, quarters seasonally adjusted]

                                                                                                         2002                                                2003                                  Change:
                                   (Credits +, debits -)                                    2002                                                                                                    2003
                                                                                                           I           II           III          IV            I           IIr         IIIp        II-III

                               Capital and financial account

                                      Capital account

39 Capital account transactions, net....................................................      -1,285         -277         -286         -364         -358         -388       -1,553         -795          758

                                     Financial account

40 U.S.-owned assets abroad, net (increase/financial outflow (-)).......................    -178,985      -35,227     -128,567       29,712      -44,902     -101,331     -112,818       -4,891      107,927

41     U.S. official reserve assets, net................................................      -3,681          390       -1,843       -1,416         -812           83         -170         -611         -441
42          Gold........................................................................        ....         ....         ....         ....         ....         ....         ....         ....         ....
43          Special drawing rights......................................................        -475         -109         -107         -132         -127          897         -102          -97            5
44          Reserve position in the International Monetary Fund.........................      -2,632          652       -1,607       -1,136         -541         -644           86         -383         -469
45          Foreign currencies..........................................................        -574         -153         -129         -148         -144         -170         -154         -131           23

46     U.S. Government assets, other than official reserve assets, net..................         -32          133           42          -27         -180          -70          427          530          103
47          U.S. credits and other long-term assets.....................................      -5,611         -853         -565       -1,375       -2,818       -2,578       -1,454       -1,515          -61
48          Repayments on U.S. credits and other long-term assets.......................       5,684          994          566        1,452        2,672        2,472        1,955        2,027           72
49          U.S. foreign currency holdings and U.S. short-term assets, net..............        -105           -8           41         -104          -34           36          -74           18           92

50     U.S. private assets, net.........................................................    -175,272      -35,750     -126,766       31,155      -43,910     -101,344     -113,075       -4,810      108,265
51          Direct investment...........................................................    -137,836      -39,083      -35,459      -31,623      -31,670      -34,405      -29,863      -37,525       -7,662
52          Foreign securities..........................................................      15,801        5,367       -5,843       21,641       -5,364      -27,146        8,654      -28,826      -37,480
53          U.S. claims on unaffiliated foreigners reported by
                 U.S. nonbanking concerns...............................................     -31,880       -1,886      -16,210      -11,862       -1,922      -11,998      -19,101       22,206       41,307
54          U.S. claims reported by U.S. banks, not included elsewhere..................     -21,357         -148      -69,254       52,999       -4,954      -27,795      -72,765       39,335      112,100

55 Foreign-owned assets in the United States, net (increase/financial inflow (+)).......     706,983      146,813      221,242      141,478      197,448      242,004      262,819      128,200     -134,619

56     Foreign official assets in the United States, net................................      94,860        6,106       47,552        8,992       32,210       40,978       57,000       43,895      -13,105
57          U.S. Government securities..................................................      73,521        6,257       21,706       12,300       33,258       31,768       38,639       19,611      -19,028
58              U.S. Treasury securities................................................      43,144       -1,039       15,138        1,415       27,630       22,288       35,349       16,271      -19,078
59              Other...................................................................      30,377        7,296        6,568       10,885        5,628        9,480        3,290        3,340           50
60          Other U.S. Government liabilities...........................................         137         -597          365          464          -95         -437          -16          -41          -25
61          U.S. liabilities reported by U.S. banks, not included elsewhere.............      17,594         -280       24,575       -4,607       -2,094        8,321       17,628       22,879        5,251
62          Other foreign official assets...............................................       3,608          726          906          835        1,141        1,326          749        1,446          697

63     Other foreign assets in the United States, net...................................     612,123      140,707      173,690      132,486      165,238      201,026      205,819       84,305     -121,514
64          Direct investment...........................................................      39,633       10,607         -456       14,199       15,281       34,386       22,391        8,139      -14,252
65          U.S. Treasury securities....................................................      96,217       11,789       14,218       57,505       12,705       14,568       55,037       49,868       -5,169
66          U.S. securities other than U.S. Treasury securities.........................     291,492       74,461      104,187       45,880       66,964       55,574       85,964        9,626      -76,338
67          U.S. currency...............................................................      21,513        4,525        7,183        2,556        7,249        4,927        1,458        2,768        1,310
68          U.S. liabilities to unaffiliated foreigners reported by
                 U.S. nonbanking  concerns..............................................      72,142       46,771       24,610       -8,102        8,863       74,848        4,147        6,772        2,625
69          U.S. liabilities reported by U.S. banks, not included elsewhere.............      91,126       -7,446       23,948       20,448       54,176       16,723       36,822        7,132      -29,690

70 Statistical discrepancy (sum of above items with sign reversed)......................     -45,852       -4,581       30,438      -48,102      -23,602       -1,578       -9,054       12,527       21,581

   Memoranda:
71 Balance on goods (lines 3 and 20)....................................................    -482,872     -106,033     -121,286     -123,312     -132,241     -136,018     -138,088     -136,232        1,856
72 Balance on services (lines 4 and 21).................................................      64,834       15,976       16,398       16,332       16,125       14,389       13,904       14,915        1,011
73 Balance on goods and services (lines 2 and 19).......................................    -418,038      -90,057     -104,888     -106,980     -116,116     -121,629     -124,184     -121,317        2,867
74 Balance on income (lines 12 and 29)..................................................      -3,970         -733       -4,458       -1,747        2,966          191        1,730        2,595          865
75 Unilateral current transfers, net (line 35)..........................................     -58,853      -15,938      -13,481      -13,997      -15,436      -17,269      -16,940      -16,319          621
76 Balance on current account (lines 1, 18, and 35 or lines 73, 74, and 75).............    -480,861     -106,728     -122,827     -122,724     -128,586     -138,707     -139,394     -135,041        4,353
r  Revised.  p  Preliminary.

NOTE:--Details may not add to totals because of rounding.     Source:  U. S. Bureau of Economic Analysis