One tackle the BEA report that I learn was as follows:
“The US economic system has had the strongest restoration from the COVID-19 pandemic of any main developed economic system. Annual inflation is approaching the Federal Reserve’s goal with no recession, non-managerial actual wages have exceeded pre-pandemic developments, client spending is constant to exceed expectations, funding in factories is at report ranges, and america is a web exporter of petroleum merchandise.
In opposition to this backdrop, in January a brand new administration will take cost of presidency. Preliminary market response to the information was favorable, with the expectation that the brand new administration will have the ability to construct on the economic system’s sturdy foundations and unlock additional development. On the similar time, there stays uncertainty across the potential implications of financial insurance policies of the incoming administration.”
Extra as I get it.
The U.S. web worldwide funding place, the distinction between U.S. residents’ international monetary belongings and liabilities, was –$23.60 trillion on the finish of the third quarter of 2024, in accordance with statistics launched immediately by the U.S. Bureau of Financial Evaluation (chart 1). Property totaled $37.86 trillion, and liabilities had been $61.46 trillion (chart 2). On the finish of the second quarter, the web funding place was –$22.55 trillion (revised). The online funding place and elements of belongings and liabilities are offered in desk 1.
The –$1.06 trillion change within the web funding place from the second quarter to the third quarter got here from web monetary transactions of –$479.5 billion and web different modifications in place, corresponding to value and exchange-rate modifications, of –$577.2 billion (desk 2).
Value modifications of –$1.43 trillion mirrored U.S. inventory value will increase that exceeded international inventory value will increase, which raised the market worth of U.S. liabilities greater than U.S. belongings.
The impression of value modifications was partly offset by exchange-rate modifications of $936.0 billion, reflecting international forex appreciation towards the U.S. greenback, which raised the worth of U.S. belongings greater than U.S. liabilities in greenback phrases.
U.S. belongings elevated by $1.78 trillion to a complete of $37.86 trillion on the finish of the third quarter, pushed primarily by the appreciation of main foreign currency echange towards the U.S. greenback that raised the market worth of belongings in greenback phrases. All main funding classes of belongings elevated, notably portfolio funding and direct funding belongings (chart 3).
Portfolio funding belongings elevated by $786.2 billion to $16.87 trillion and direct funding belongings elevated by $563.5 billion to $11.90 trillion, reflecting exchange-rate modifications of $630.3 billion and $322.5 billion, respectively (desk 2).
U.S. liabilities elevated by $2.83 trillion to a complete of $61.46 trillion on the finish of the third quarter, pushed primarily by U.S. inventory value will increase that raised the market worth of portfolio funding and direct funding liabilities (chart 4). Monetary transactions of $716.7 billion, notably international purchases of U.S. debt and fairness securities, additionally contributed to the general enhance in U.S. liabilities (desk 2).
Portfolio funding liabilities elevated by $1.59 trillion to $32.49 trillion, attributable to cost modifications of $1.08 trillion and monetary transactions of $637.6 billion. Direct funding liabilities elevated by $840.5 billion to $17.54 trillion, reflecting value modifications of $733.6 billion (desk 2).
