12 December 2001, 16:41  US Q3 current acccount deficit 95.0 bln usd vs revised 107.6 bln in Q2

WASHINGTON (AFX) - The US current account deficit narrowed to 95.0 bln usd in the third quarter from a revised 107.6 bln in the second quarter, the Commerce Department said. This is the smallest deficit since the fourth quarter of 1999. The narrowing of the current account deficit was in line with Wall Street forecasts. In the second quarter, the current account deficit had been originally reported at 106.5 bln usd. A decrease in the deficit for goods and services in the third quarter more than offset small increases in the deficit on income and in net unilateral current transfers, the department said. The deficit on goods and services narrowed to 77.6 bln usd in the third quarter from 90.5 bln in the second quarter. The income deficit was virtually unchanged at 5.0 bln usd. Unilateral current transfers were net outflows of 12.4 bln usd in the third quarter, up from net outflows of 12.0 bln in the second quarter. Net foreign purchases of US securities other than US Treasury securities were 77.5 bln usd in the third quarter, down from 140.5 bln in the second quarter. Net foreign purchases of US stocks were 7.5 bln usd in the third quarter, down from 40.6 bln in the second. "The US recession and uncertain financial conditions significantly reduced the attractiveness of US stocks," the department said. Net foreign sales of US Treasury securities were 9.4 bln usd in the third quarter, up from 8.7 bln in the second quarter.

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