U.S. CURRENT ACCOUNT DEFICIT 36.84 BILLION DLRS

  The U.S. current account deficit
  widened to a record 36.84 billion dlrs on a balance of payments
  basis in the October-December fourth quarter of 1986 from a
  revised 35.29 billion dlrs in the third quarter, the Commerce
  Department said.
      Previously, the department said the third-quarter deficit
  was 36.28 billion dlrs.
      For the full year 1986, the current account, a broad
  measure of trade performance, was in deficit a record 140.57
  billion dlrs after a 117.68 billion dlr deficit in 1985.
      The department said an increase in the merchandise trade
  deficit during the fourth quarter to 38.4 billion dlrs from
  37.1 billion dlrs in the third quarter was the main reason for
  the worsening deficit.
      Net service receipts declined to 5.5 billion dlrs in the
  final quarter from six billion dlrs in the third quarter.
      The current account includes trade in merchandise and
  services as well as U.S. financial transactions with the rest
  of the world.
      The department said the merchandise trade deficit for all
  of 1986 grew to 147.7 billion from 124.4 billion dlrs in 1985.
      Net service receipts were 22.3 billion dlrs in 1986,
  compared with 21.7 billion dlrs in 1985, the department said.
      Net unilateral transfers during the fourth quarter last
  year, covering foreign aid and government pensions, were down
  to 3.9 billion dlrs from 4.2 billion dlrs in the third quarter
  because of fewer U.S. government grants to Mideast countries.
      Liabilities to foreigners reported by U.S. banks rose 35.3
  billion dlrs between October and December after increasing 30.1
  billion dlrs in the third quarter.
      For the full year, these liabilities grew 77.4 billion dlrs
  after rising by 40.4 billion dlrs in 1985.
      The department said inflows were boosted in the fourth
  quarter by international activities of Japanese banks and
  strong demand within the United States to finance acquisitions.
      Net foreign sales of U.S. Treasury securities by foreigners
  were 2.7 billion dlrs in the quarter after purchases of 500 mln
  dlrs in the third quarter.
      Net foreign purchases of securities other than U.S.
  Treasury securities in the fourth quarter were 11.8 billion
  dlrs, compared with 17.2 billion dlrs in the third quarter.
      For all 1986, foreign purchases of securities excluding
  U.S. Treasury securities were a record 70.7 billion dlrs,
  surpassing the previous record 50.9 billion dlr total in 1985.
     Claims on foreigners reported by U.S. banks in the fourth
  quarter rose 29.9 billion dlrs after a 19.3 billion dlr
  third-quarter increase.
      U.S. sales of foreign securities rose to 2.7 billion dlrs
  from 300 mln dlrs in the third quarter because of a sharp
  selloff of foreign stocks and bonds, the department said.
      Outflows for U.S. direct investment abroad fell to 5.7
  billion dlrs from eight billion dlrs in the third quarter.
      Foreign direct investment in the United States increased
  14.4 billion dlrs in the fourth quarter, compared with 5.6
  billion dlrs in the previous quarter, because of stepped-up
  acquisitions, the department said.
      Foreign official assets in the United States increased 800
  mln dlrs between October and December after rising 15.4 billion
  dlrs in the third quarter.
      For the full year 1986, foreign official assets grew 33.4
  billion dlrs after a 1985 decrease of 1.9 billion dlrs as
  foreign monetary authorities intervened heavily in exchange
  markets late in the year as the dollar fell, commerce said.
  

