The $782.1 billion decrease in the net investment position also reflected net financial transactions of −$24.6 billion and net other changes in position, such as price and exchange-rate changes, of −$757.5 billion (table A).
The net investment position decreased 8.8 percent in the third quarter, compared with a decrease of 14.2 percent in the second quarter and an average quarterly decrease of 4.4 percent from the first quarter of 2011 through the first quarter of 2018.
U.S. assets increased $135.5 billion to $27,150.7 billion at the end of the third quarter, reflecting increases in portfolio investment assets and direct investment assets that were partly offset by decreases in financial derivatives, other investment assets, and reserve assets.
- Assets excluding financial derivatives increased $214.7 billion to $25,651.5 billion. The increase resulted from financial transactions of $141.9 billion and other changes in position of $72.8 billion (table A).
- Financial transactions mostly reflected net U.S. acquisition of direct investment assets and net U.S. purchases of foreign securities. The net U.S. acquisition of direct investment assets followed two quarters of net U.S. withdrawal of assets. For more information, see the box "Effects of the 2017 Tax Cuts and Jobs Act on U.S. Direct Investment Assets."
- Other changes in position reflected foreign stock price increases that raised the equity value of portfolio investment and direct investment assets. These price increases were partly offset by decreases from exchange-rate changes, as several major foreign currencies depreciated against the U.S. dollar, lowering the value of foreign-currency-denominated assets in dollar terms.
- Financial derivatives decreased $79.3 billion to $1,499.2 billion, reflecting decreases in single-currency interest rate contracts and foreign exchange contracts.
|Change in position in 2018:III||Position,
in position 1
|U.S. net international investment position||-8,845.1||-782.1||-24.6||-757.5||-9,627.2|
|Net position excluding financial derivatives||-8,907.7||-776.7||-12.4||-764.3||-9,684.4|
|Financial derivatives other than reserves, net||62.6||-5.4||-12.3||6.9||57.2|
|Assets excluding financial derivatives||25,436.7||214.7||141.9||72.8||25,651.5|
|Financial derivatives other than reserves||1,578.5||-79.3||(2)||(2)||1,499.2|
|Liabilities excluding financial derivatives||34,344.4||991.4||154.3||837.1||35,335.9|
|Financial derivatives other than reserves||1,515.9||-73.9||(2)||(2)||1,442.0|
|1. Disaggregation of other changes in position into price changes, exchange-rate changes, and other changes in volume and valuation is only presented for annual statistics released in June each year.
2. Financial transactions and other changes in financial derivatives positions are available only on a net basis; they are not separately available for U.S. assets and U.S. liabilities.
- Liabilities excluding financial derivatives increased $991.4 billion to $35,335.9 billion. The increase resulted from financial transactions of $154.3 billion and other changes in position of $837.1 billion (table A).
- Financial transactions mostly reflected net U.S. incurrence of direct investment liabilities.
- Other changes in position were driven by U.S. stock price increases that raised the equity value of direct investment and portfolio investment liabilities.
- Financial derivatives decreased $73.9 billion to $1,442.0 billion, reflecting decreases in single-currency interest rate contracts and foreign exchange contracts.
Effects of the 2017 Tax Cuts and Jobs Act on U.S. Direct Investment Assets
The financial transactions highlighted in this release and related income transactions are reflected in the U.S. international transactions accounts. For more information about how the TCJA affected direct investment asset and income transactions, see "U.S. International Transactions: Third Quarter 2018," which was released on December 19, 2018, and two BEA FAQs "How are the international transactions accounts affected by an increase in direct investment dividend receipts?" and "How does the 2017 Tax Cuts and Jobs Act affect BEA's business income statistics?"
Billions of dollars, not seasonally adjusted
|Preliminary estimate||Revised estimate|
|U.S. net international investment position||-8,638.5||-8,845.1|
|Direct investment at market value||8,441.5||8,380.0|
|Financial derivatives other than reserves||1,578.5||1,578.5|
|Direct investment at market value||9,018.5||9,011.8|
|Financial derivatives other than reserves||1,515.9||1,515.9|
U.S. Net International Investment Position, Fourth Quarter and Year 2018
* * *
U.S. Net International Investment Position Release Dates in 2019
|Fourth Quarter and Year 2018||March 27|
|First Quarter 2019, Year 2018, and Annual Update||June 26|
|Second Quarter 2019||September 30|
|Third Quarter 2019||December 27|