Archive for September, 2013



Value of Foreign Investments in the United States and U.S. Investments Abroad Decreased in Second Quarter 2013

The U.S. net international investment position was –$4,504.1 billion (preliminary) at the end of the second quarter of 2013 compared with –$4,236.6 billion (revised) at the end of the first quarter, as the value of foreign investments in the United States exceeded the value of U.S. investments abroad.iip0924

• The $267.6 billion decrease in the net position reflected a $605.8 billion decrease in the value of U.S.-owned assets abroad that exceeded a $338.2 billion decrease in the value of foreign-owned assets in the United States.

• The net position decreased 6 percent in the second quarter, compared with a 10 percent decrease in the first quarter and an average quarterly decrease of 8 percent from the first quarter of 2011 through the first quarter of 2013.

• U.S.-owned assets abroad were $20,984.3 billion at the end of the second quarter, compared with $21,590.1 billion at the end of the first quarter.

• Foreign-owned assets in the United States were $25,488.4 billion at the end of the second quarter, compared with $25,826.6 billion at the end of the first quarter.

Fore more, read the full report.

A New Look at State-Level R&D by Multinational Companies

The amount of research and development (R&D) generated by multinational companies varies widely across U.S. states.

A new examination of data shows that the R&D performed by foreign-owned U.S. affiliates in 2007 ranged from $1 million in South Dakota to $5.3 billion in California. In addition to California, the R&D of U.S. affiliates was higher than $2.5 billion in three other states: New Jersey, Pennsylvania, and Michigan.chart 1_0920

The R&D performed by U.S. parents of foreign affiliates ranged from $8 million in Wyoming to $43 billion in California.  In nine other states—Massachusetts, Michigan, New Jersey, Washington, Texas, Illinois, Pennsylvania, Connecticut, and New York—the R&D of U.S. parents was higher than $5 billion.

chart 2_0920

The state-level data recently became available through an interagency project that linked information from the Bureau of Economic Analysis’ annual surveys of multinational companies to information from the Survey of Industrial Research and Development conducted by the Census Bureau for the National Science Foundation.

The new research shows that states with the highest levels of R&D performed by multinationals tend to be the states that also have the highest levels of R&D generated by all U.S. businesses.

There are, however, significant differences among these states in terms of the relative importance of R&D performed by U.S. affiliates.table 1_0920

California, the top-ranking state for R&D performed by both U.S. affiliates and all U.S. businesses, accounts for 24 percent of the total R&D performed by all U.S. businesses but for only 16 percent of the total R&D performed by U.S. affiliates.  Reflecting this disparity, the share of California’s gross domestic product (GDP) (adjusted to count R&D expenditures as investment) accounted for by all-U.S.-business R&D is 3.3 percent, but the share accounted for by affiliate R&D is only 0.3 percent.

In contrast, New Jersey, which ranks second in terms of R&D performed by U.S. affiliates and third in terms of R&D performed by all U.S. businesses, accounts for 14 percent of the total R&D of affiliates but for only 7 percent of the R&D of all U.S. businesses.  The share of GDP in New Jersey accounted for by affiliate R&D (1.0 percent) is much closer to the share accounted for by R&D by all U.S. businesses (3.6 percent) than is the case for California.

In addition to New Jersey, the state shares of affiliate R&D are relatively large in Pennsylvania and North Carolina.  A common characteristic of these states is a high concentration of R&D activity in the chemicals industry (mainly pharmaceuticals).

For U.S. parent companies, the state shares of total R&D more closely match the state shares of R&D performed by all U.S. businesses.table 2_0920

For California, New Jersey, and North Carolina, the state shares of total parent R&D are almost identical to the state shares of total R&D for all U.S. businesses.  The variation across states in the percentage of state GDP accounted for by parent R&D closely tracks that for the percentage accounted for by all-U.S.-business R&D.

To learn more about the state distribution of R&D performed by U.S. affiliates and U.S. parent companies, read the full report.

 

 

Travel and Tourism Spending Decelerated in the Second Quarter of 2013

Real spending on travel and tourism decelerated in the second quarter of 2013, increasing at an annual rate of 2.5 percent after increasing 7.3 percent revised) in the first quarter of 2013.

Real Tourism Spending. Real spending on transportation goods and services decelerated, increasing 5.1 percent in the second quarter of 2013 after increasing 13.4 percent in the first quarter. Real spending on “traveler accommodations” turned down, decreasing 0.2 percent in the second quarter after increasing 4.6 percent in the first quarter. Business travelers’ spending continued to increase in the second quarter.ttsa_1

Tourism Prices. Prices for “passenger air transportation” decreased 8.4 percent in the second quarter of 2013 after decreasing 0.6 percent in the first quarter. Fuel costs decreased from their previous highs. Prices for “all other transportation-related commodities” decreased 11.1 percent in the second quarter after decreasing 3.5 percent in the first quarter. ttsa_2

Tourism Employment. Employment in the travel and tourism industries accelerated in the second quarter of 2013, increasing 3.4 percent after increasing 2.3 percent in the first quarter. The primary contributors to the acceleration in employment were “food services and drinking places” and “air transportation services.”ttsa_3

To learn more, read the full report.