U.S. International Transactions: Second Quarter 2006

The U.S. current-account deficit--the combined balances on trade in goods and services, income, and net unilateral current transfers--increased to $218.4 billion (preliminary) in the second quarter of 2006 from $213.2 billion (revised) in the first quarter. The increase was mostly accounted for by increases in the deficits on goods and on income. Net unilateral current transfers to foreigners also increased, and the surplus on services was virtually unchanged.