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Travel and Tourism Spending Turned Down in the First Quarter of 2014

Real spending on travel and tourism turned down in the first quarter of 2014, decreasing at an annual rate of 1.0 percent after increasing 4.5 percent (revised) in the fourth quarter of 2013.  Growth in real gross domestic product (GDP) also experienced a down turn, decreasing 2.9 percent (third estimate) in the first quarter after increasing 2.6 percent in the fourth quarter.

The leading contributors to the down turn in the first quarter were “recreation and entertainment,” and  “food services and drinking places.” “Recreation and entertainment” turned down, decreasing 11.2 percent in the first quarter after increasing 0.9 percent in the fourth quarter. “Food services and drinking places” also turned down in the first quarter, decreasing 3.5 percent after increasing 7.4 percent in the fourth quarter. Partially offsetting these downturns, “all other transportation-related commodities” turned up.

 

tourism2

real tourism spendingReal Tourism Spending.  Real spending on “recreation and entertainment” turned down, decreasing11.2 percent in the first quarter after increasing0.9 percent in the fourth quarter. Real spending on “food services and drinking places” also turned down, decreasing3.5 percent in the first quarterafterincreasing7.4 percent in the fourth quarter.

tourism pricesTourism Prices.  Overall growth in prices for travel and tourism goods and services turned up in the first quarter of 2014, increasing 2.3 percent following a 0.2 percent (revised) decrease in the fourth quarter.  The upturn was mainly attributable to an upturn in prices for “traveler accommodations,” which increased 13.2 percent in the first quarter after decreasing 8.0 percent in the fourth quarter. In contrast, prices for “passenger air transportation” turned down, decreasing 5.5 percent in the first quarter after increasing7.0 percent in the fourth quarter.

tourism employmentTourism Employment.  Employment in the travel and tourism industries decelerated, increasing2.1 percent in the first quarter of 2014 after increasing

2.7 percent (revised) in the fourth quarter of 2013. By comparison, overall U.S. employment increased

1.5 percent in the first quarter after increasing1.8 percent in the fourth quarter. “Air transportation services” and “food services and drinking places” were significant contributors to employment growth.

Total Tourism-Related Spending was $1.5 trillion in the first quarter of 2014. It consisted of $873.1 billion (58 percent) of direct tourism spending and$625.7 billion (42 percent) of indirect tourism- related spending.

Total Tourism-Related Employment was 7.7 million jobs in the first quarter of 2014 and consisted of 5.4 million (71 percent) direct tourism jobs and 2.3 million (29 percent) indirect tourism-related jobs.

Personal Income Rises in May

chart2Personal income increased 0.4 percent in May after increasing 0.3 percent in April. Wages and salaries, the largest component of personal income, increased 0.4 percent after increasing 0.3 percent.

Current-dollar disposable personal income (DPI), after-tax income, increased 0.4 percent in May, the same increase as in April.

Real DPI, income adjusted for taxes and inflation, increased0.2percent in May, the same increase as in April.

Real consumer spending, spending adjusted for price changes, decreased 0.1 percent in May after decreasing 0.2 percent in April. Spending on durable goods increased 1.0 percent after decreasing 0.9percent; spending on motor vehicles and parts turned up in May.

PCE prices increased 0.2 percent in May, the same increase as in April. Excluding food and energy, PCE prices rose 0.2 percent in May, the same as in April.

Personal saving rate
Personal saving as a percent of DPI was 4.8 percent in May and 4.5 percent in April.

real disposable personal income

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Direct Investment Positions for 2013 Now Available

Both outbound and inbound U.S. foreign direct investment continued to grow in 2013. The U.S. direct investment position abroad valued at historical cost increased to $4,660.9 billion from $4,384.7 billion in 2012.  The foreign direct investment position in the United States valued at historical cost increased to $2,764.0 billion from $2,605.8 billion in 2012.

Inward Direct Investment Outward Direct Investment

The U.S. Bureau of Economic Analysis (BEA) has released detailed statistics on U.S. direct investment abroad – or “outward direct investment”­­­– and on foreign direct investment in the United States – or “inward direct investment”.  These statistics cover direct investment positions at historical-cost (book value) on a directional basis, by country and industry. On a directional basis, direct investment claims and liabilities are classified according to whether the direct investor is a U.S. resident or a foreign resident. On this basis, outward investment occurs between a U.S. parent company and its foreign affiliates, and inward direct investment occurs between a foreign company and its U.S. affiliates. In each case, the position measures the parent’s net financial claims on its affiliates.

These statistics provide data on direct investment by country and by industry.  For outward investment, the statistics provide information for major countries and industries in which U.S. companies have invested directly and are classified by the country and industry of the foreign affiliate.

For inward investment, the statistics provide information for major countries from which there is direct investment.  These statistics are classified by the country of the foreign parent—that is, the country of the investor with a direct investment in the U.S. affiliate.  Statistics on inward investment classified by the country of the investor who ultimately controls the investment, called the ultimate beneficial owner, are also available.

By providing this additional detail, these statistics enhance the International Transactions Accounts released in June 2014 and the upcoming International Investment Position statistics.

For 2011-2012, the statistics reflect the incorporation of new or revised data from BEA’s quarterly surveys of transactions between parents (both U.S. and foreign) and their affiliates, along with annual surveys of financial and operating data for U.S. parent companies and their foreign affiliates and for U.S. affiliates of foreign companies.

Upcoming articles in the July and September Survey of Current Business will present these statistics as well as additional statistics, such as related financial transactions and income, statistics for all countries and industries, reinvestment ratios, rates of return, and position and income data for outward investment classified by the industry of the U.S. parent.