The U.S. current-account deficit--the combined balances on trade in goods and services, income, and net unilateral current transfers--increased to $225.6 billion (preliminary) in the third quarter of 2006 from $217.1 billion (revised) in the second quarter.
The increase was more than accounted for by increases in the deficits on goods and on income. The surplus on services increased, and net unilateral current transfers to foreigners decreased.
Goods and services The deficit on goods and services increased to $200.3 billion in the third quarter from $193.1 billion in the second.
The deficit on goods increased to $218.6 billion in the third quarter from $210.6 billion in the second.
Goods exports increased to $262.1 billion from $252.8 billion. The increase resulted from increases in all major commodity categories.
Income The deficit on income increased to $3.8 billion in the third quarter from $2.2 billion in the second.
Investment income Income receipts on U.S.-owned assets abroad increased to $160.1 billion from $155.3 billion.
The increase was largely accounted for by an increase in “other” private receipts (which consists of interest and dividends). Direct investment receipts also increased.
Income payments on foreign-owned assets in the United States increased to $162.2 billion from $155.8 billion.
Direct investment payments, “other” private payments (which consists of interest and dividends), and U.S. Government payments (which consists of interest) all increased.
Compensation of employees Receipts for compensation of U.S. workers abroad were virtually unchanged at $0.7 billion, and payments for compensation of foreign workers in the United States also were virtually unchanged at $2.4 billion.
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