Dec 17: Current Account Deficit Decreased

Source: http://www.zacks.com/stock/news/16436/Dec+17%3A+Current+Account+Deficit+Decreased
Posted on Wednesday, December 17th, 2008 | In Stocks to Watch

Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

The BEA announced the U.S. Current Account Deficit decreased to $174.1 billion, based on preliminary estimates, in the third quarter of 2008 from a revised $180.9 billion in the second quarter, originally reported at $183.1 billion, and $175.6 billion in the first quarter. Analysts expected the deficit to increase to $178.1 billion in the third quarter. Over the third quarter, the surplus on income increased while the deficit in goods and services and net unilateral current transfers decreased.

The deficit on goods and services decreased by $3.6 billion, to $176.5 billion, in the third quarter. Good exports increased, with more than half of the increase accounted for by a rise in industrial supplies and materials. Good imports increased by an increase in petroleum and products. Services receipts increase from increases in travel, other private services, passenger fares, and in royalties and licensing fees. Service payments increased from increases in royalties and license fees and in other private services.

The surplus on income increased $2.6 billion to $30.6 billion in the third quarter. Income receipts decreased by a decrease in direct investment receipts. Income payments on foreign owned assets decreased from decreases in direct investment payments and in U.S. government payments. Receipts for compensation of U.S. workers abroad and payments for compensation of foreign workers in the U.S. were essentially unchanged.

Net unilateral current transfers decreased by $0.6 billion to $28.4 billion in the third quarter. The decrease was from decreased private remittances and other transfers.

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