Real spending on travel and tourism decelerated in the third quarter of 2014, increasing at an annual rate of 1.3 percent after increasing 3.3 percent (revised) in the second quarter. Real gross domestic product (GDP) also decelerated, increasing 3.9 percent (second estimate) in the third quarter after increasing 4.6 percent.
The leading contributors to the deceleration in the third quarter were “passenger air transportation,” and “recreation and entertainment.” “Passenger air transportation” turned down, decreasing 7.2 percent in the third quarter after increasing 11.1 percent in the second quarter. “Recreation and entertainment” also turned down, decreasing 5.5 percent after increasing 4.1 percent. Partially offsetting these downturns, “traveler accommodations” turned up, increasing 8.3 percent in the third quarter after decreasing 0.9 percent.
The U.S. current-account deficit — a net measure of transactions between the United States and the rest of the world in goods, services, primary income (investment income and compensation), and secondary income (current transfers) — increased to $100.3 billion (preliminary) in the third quarter of 2014 from $98.4 billion (revised) in the second quarter of 2014. As a percentage of U.S. GDP, the deficit remained at 2.3 percent. The previously published current-account deficit for the second quarter was $98.5 billion.
- The deficit on international trade in goods decreased to $182.1 billion from $189.3 billion as goods exports increased and goods imports decreased.
- The surplus on international trade in services decreased to $57.7 billion from $58.1 billion as services imports increased more than services exports.
- The surplus on primary income increased to $59.0 billion from $54.8 billion as primary income receipts increased more than primary income payments.
- The deficit on secondary income (current transfers) increased to $34.9 billion from $22.0 billion as secondary income receipts decreased and secondary income payments increased.
Net U.S. borrowing from financial-account transactions was $22.5 billion in the third quarter, up from $22.2 billion in the second.
- Net U.S. acquisition of financial assets excluding financial derivatives was $358.2 billion in the third quarter, up from $241.6 billion in the second.
- Net U.S. incurrence of liabilities excluding financial derivatives was $356.4 billion in the third quarter, up from $261.0 billion in the second.
- Net borrowing in financial derivatives other than reserves was $24.3 billion in the third quarter, up from $2.8 billion in the second.
Read the full report.
Preliminary statistics on people’s incomes by state in the third quarter of 2014 will be released Friday, Dec. 19 by the U.S. Bureau of Economic Analysis (BEA).
These state personal income statistics will provide BEA’s first look at state economies for the July-September quarter of 2014 and serve as a basis for government and business decision making. For example:
- Federal government agencies use state personal income statistics to allocate funds and determine matching grants to states. The statistics are also used in forecasting models to project energy and water use.
- State governments use the statistics to project tax revenues and demand for public services.
- Academic regional economists use the statistics for applied research.
- Businesses, trade associations, and labor organization use the statistics for market research.
As part of this report, BEA will release revised statistics for the first two quarters of 2014.