Integrated macroeconomic accounts for the United States.

Bond, Charlotte Anne ; Martin, Teran ; McIntosh, Susan Hume 等

THIS article introduces a set of macroeconomic accounts that relate production, income and saving, capital formation, financial transactions, and asset revaluations to changes in net worth between balance sheets for major sectors of the U.S. economy. These new accounts should help economists gain a better understanding of major developments in the U.S. economy by providing a comprehensive picture of economic activity within an integrated framework in which consistent definitions, classifications, and accounting conventions are used throughout the presentation.

Highlights of the integrated macroeconomic accounts include the following:

* Among the domestic sectors, households and nonprofit institutions, non financial noncorporate businesses, the Federal Government, and state and local governments have been net borrowers in recent years, as net fixed investment in these sectors has exceeded net saving. Net lending to these sectors has been provided by nonfinancial corporations, financial businesses, and the rest of the world.

* The net lending position of the nonfinancial corporate sector in recent years has been quite unusual, with undistributed corporate profits (net saving) exceeding net investment by an average of $43.6 billion each year in 2003-2005. Funds raised in credit and equity markets were also unusually low as borrowing in the form of loans and debt securities was mainly offset by retirements of corporate equities.

* Although the saving rate for households and nonprofit institutions has fallen to historically low levels in recent years, the net worth of this sector increased $12.9 trillion in 2003-2005. This increase was mainly accounted for by a $4.9 trillion increase in the value of real estate and a $4.5 trillion rise in the values of shares and other equity that were due to changes in prices.

* In recent years, low personal saving rates have been associated with large volumes of mortgage borrowing, which averaged $984.4 billion each year in 2003-2005. However, the increase in mortgage debt of households and nonprofit institutions was exceeded by an average annual increase of $2.2 trillion in the value of real estate, which includes net investment. Because most of the real estate in this sector is associated with owner-occupied housing, net housing wealth, defined as the difference between owner-occupied housing values and related mortgage debt, rose substantially.

The full set of integrated macroeconomic accounts were developed as part of an interagency effort to further harmonize the Bureau of Economic Analysis national income and product accounts (NIPAs) and the Federal Reserve Board flow of funds accounts (FFAs) and to bring these accounts into closer accordance with the national accounting guidelines offered by the international community in the System of National Accounts, 1993 (SNA). (1) Accordingly, the SNA was used as the organizing framework for the integrated accounts, but these accounts do not necessarily follow all of the guidelines offered by the SNA. Related improvements in the NIPAs and FFAs will be introduced according to the standard revision policies for these accounts; the agencies currently plan to introduce related improvements into the integrated accounts during the quarterly updates that immediately follow their availability.

In the first part of this article, the main features of the SNA that are necessary to understand the overall structure of the integrated accounts and related research initiatives are introduced, and the differences in these features from those of the NIPAs and FFAs are discussed. In the second part, the integrated macroeconomic accounts are introduced, and some of their limitations are discussed. In the third part, some potential uses of the new accounts are illustrated. In the fourth part, some ideas to further develop these accounts are discussed.

International Guidelines

The SNA is an accounting structure for reporting macroeconomic data that summarize the transactions of groups of institutions (or sectors) and groups of establishments engaged in production (or industries). It begins with a sequence of accounts that flow into one another to track the sources of change in net worth for each sector. These accounts are then summed across sectors to obtain accounts for the total economy.

In the SNA, a nation's institutions are grouped into five mutually exclusive sectors that are intended to cover just about all macroeconomic activity--nonfinancial corporations, financial corporations, general government, nonprofit institutions serving households, and households. The SNA also allows for each sector to be divided into subsectors. For example, in the general government sector, accounts can be compiled for central government, state government, local government, and social security funds.

The sequence of accounts for each sector begins with an opening balance sheet, which records the value of assets, liabilities, and net worth (chart 1).

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The balance sheet is followed by a sequence of current accounts. The first of these shows the contribution that is made by the sector to gross domestic product both in terms of the goods and services that are produced and the cost incurred during production. The remainder of these shows how net income that is generated from current production and received by the sector is used to finance consumption and savings.

The current account is followed by two accumulation accounts that separately derive a measure of the net lending or net borrowing position of the sector. The first, a capital account, derives net lending or net borrowing by subtracting fixed investment from saving that has been carried forward from the current account. The second, a financial account, derives net lending or net borrowing by subtracting the net acquisition of financial liabilities from the net acquisition of financial assets.

In principle, the value of net lending or net borrowing should be the same in both of the accounts, because saving that is not spent on purchases of fixed assets results in the acquisition of financial assets and because borrowing that is used to finance the purchase of fixed assets results in the incurrence of financial liabilities. However, when compiling the two related accounts, the values for the two measures are almost never equal because of differences in source data, timing of recorded flows, and other statistical differences between data used to create the measures.

The capital and financial accounts are followed by two additional accumulation accounts. The first, an "other changes in volume" account, records changes in net worth that are unrelated to current production or asset revaluation, such as changes due to catastrophic losses or uncompensated seizures of foreign assets and statistical breaks due to substantive changes in sector coverage or details available in key source data. The second, a revaluation account, records changes in the values of assets and liabilities that result from changes in their price.

The sum of fixed investment, net lending or net borrowing, and other changes in net worth from the "other changes in volume" and revaluation accounts fully explains the total change in net worth for the sector, which in turn provides the next opening balance sheet position.

Differences between the NIPAs and the SNA

The NIPAs are organized as seven summary accounts, and data are presented in more than 300 underlying tables that cover most of the transactions envisioned in the current and capital accounts of the SNA. Despite the similarities in coverage, there are some notable differences between the NIPAs and the main features of the SNA that have been adopted in the integrated accounts. (2)

Differences in sectors. The sector classification scheme that is used in the NIPAs is more complicated than that recommended in the SNA. In the NIPAs, institutions are grouped one way for measuring their contribution to production, and they are grouped another way for measuring income, outlays, and saving. In contrast, the SNA recommends the use of a single set of sectors throughout the entire sequence of accounts.

For measuring the contribution to production, the NIPAs group institutions into three sectors--business, households and institutions, and general government. The business sector consists of all entities that produce goods and services for sale at a price intended to at least cover the costs of production. This includes incorporated and unincorporated forms of business organized for profit, mutual financial institutions, private uninsured pension funds, cooperatives, nonprofit organizations serving business, Federal Reserve banks, government-sponsored enterprises, and government business enterprises. (3) The households and institutions sector consists of households and nonprofit institutions serving households (NPISHs). The general government sector includes all government institutions (Federal, state, and local) except government business enterprises, which are included in the business sector of the NIPAs.

These sectors differ from those in the SNA primarily in their treatment of noncorporate business enterprises. In the NIPAs, these enterprises are included in the business sector. In the SNA, unincorporated businesses that primarily cover their operating costs through sales and that keep a complete set of financial records, such as some private partnerships and government business enterprises, are classified as "quasi-corporations" in the nonfinancial or financial corporations sectors, and other types of unincorporated enterprises, such as sole proprietorships, are classified in the household sector.

For measuring income, outlays, and saving, the NIPAs group institutions into three different sectors-corporate, personal, and government. The corporate sector consists of all nonfinancial and financial business enterprises that must file Federal corporate income tax returns, including mutual financial institutions, nonprofit institutions serving business, Federal Reserve banks, and government-sponsored enterprises. (4) The personal sector includes income that is earned by, or transferred to, households and NPISHs and the net income of enterprises that are owned by households (proprietors' income and rental income of persons). The government sector includes all government institutions, including government business enterprises.

Other differences. In the SNA, the current account for each sector begins by subtracting purchases of intermediate goods and services from gross output to arrive at value added. BEA provides value-added information by industry in its industry accounts and by sector in its detailed NIPA tables, but it does not provide information on gross output or purchases of intermediate goods and services for the private sectors of the economy. The more familiar presentation of GDP in the NIPA summary accounts calculates its value as the sum of final expenditures--personal consumption expenditures, private fixed investment, net exports of goods and services, and government expenditures and gross investment.

Differences between the FFAs and the SNA

The FFAs are organized as 19 summary accounts, and data are presented in more than 140 underlying tables, primarily focusing on financial flows and stocks of financial assets and liabilities. The FFAs cover most transactions envisioned in the capital, financial, revaluation, and "other changes in volume" accounts of the SNA, and the FFAs provide complete balance sheets for households and nonfinancial business. Despite the similarities in coverage, there are some notable differences between the FFAs and the main features of the SNA that have been adopted in the integrated accounts or that relate to future research initiatives.

Differences in sectors. The FFAs divide financial institutions (commercial banks, insurance companies, pension funds, and other financial intermediaries) into 22 different sectors. The remaining institutions in the U.S. economy are divided into five sectors--households and nonprofit organizations, nonfinancial business, Federal Government, and state and local governments. The FFAs also include nonfinancial business subsectors for nonfarm nonfinancial corporate business, nonfarm noncorporate business, and farm business.

The FFA sectors mainly differ from the SNA in the same way that the NIPA sectors that are used to measure income, outlays, and saving differ from the SNA. The financial and nonfinancial corporate sectors of the FFAs exclude quasi-corporations (partnerships), the government sectors include all government business enterprises, and the households and nonprofit organizations sector includes the net financial activity of all unincorporated businesses, not just sole proprietorships.

One exception relates to the sectoring of corporate farms. In the NIPAs, the income and outlays of corporate farms are included in the corporate sector. In contrast, corporate farms are included as part of the FFA farm subsector.

Other differences. The SNA envisions a complete balance sheet for each sector of the economy. However, the FFAs only publish balance sheets for households and nonprofit organizations, nonfinancial noncorporate business, and nonfinancial corporate business. For other types of institutions, balance sheet information in the FFAs is limited to financial assets and liabilities, mainly because of a lack of information on the market value of real estate and stocks of nonproduced nonfinancial assets, such as land, electromagnetic spectrum, and offshore drilling rights.

In the SNA, purchases of consumer durable goods are treated as final consumption in the accounts and are excluded from the balance sheets of the household sector. Although such goods provide services over a period of three or more years, their purchase is not treated as fixed investment because consumer durable goods are primarily used for nonmarket household production, which is considered outside the scope of GDP and the national accounts. In the FFAs, purchases of consumer durable goods are treated as investment because they represent important assets of households and are an important part of their net worth. Because the FFAs do not measure current production, this practice does not create any inconsistency within these accounts.

Another difference between the FFAs and the SNA mainly relates to changes in the value of financial and fixed assets. The SNA recommends differentiating between changes in net worth from revaluations due to price changes and all "other changes in volume" not associated with net investment flows. Currently, the FFAs are not able to separate "other volume changes" from revaluations for series that have both, but this is an issue the Federal Reserve Board staff is working on. The combination of these effects on changes in net worth is shown in separate "reconciliation" tables that accompany the balance sheets.

A few other differences between the FFAs and the SNA also relate to changes in the value of financial and fixed assets. First, the FFAs record bonds at book value and equities at market value, whereas the SNA recommends that all securities are recorded at market value; thus, revaluations associated with financial instruments other than shares and other equity instruments are not included in the FFAs, whereas the SNA recommends including revaluations of all financial instruments. (5) Second, debt writeoffs are not separately identified as "other changes in volume" as recommended in the SNA. Instead, they are reflected in the changes in the flows in the financial accounts.

A final difference between the data presented in the FFAs and what is envisioned in the SNA relates to the concept of net worth reported for the corporate business sectors. The FFAs follows typical accounting standards by presenting net worth as the recorded value of assets less liabilities, excluding equity capital. In contrast, the SNA calculates net worth as the market value of assets less a broader measure of liabilities that includes equity capital.

The inclusion of the market value of equity in the FFA measures of net worth allows users of these accounts to calculate many useful financial ratios. For instance, many users compare the FFA measures of net worth with those of debt to assess the long-term solvency of the nonfinancial corporate sector. Some users also compare the FFA measures of net worth with similar measures that are derived using historical costs for fixed assets to form expectations about future stock market returns. (6)

The exclusion of the market value of equity from the SNA measure of corporate net worth allows net worth for the Nation to be computed directly as the sum of net worth across the sectors. The SNA measure of corporate sector net worth can be positive or negative, depending on the relationship between the market value of equity shares outstanding and the recorded value of its assets net of liabilities. By adding this measure to net worth for the other sectors in the SNA, in principle, net worth for the Nation is based on the recorded value of corporate assets rather than on the market value of equity shares outstanding.

The New Integrated Accounts

This section introduces the tables that present the integrated macroeconomic account for each sector of the U.S. economy. Most of the series in these tables are derived from data reported in the NIPAs and the FFAs. For the other series, alternative methods and data are used to estimate their values. Both BEA and the Federal Reserve Board are confident that the data in these tables provide information that is analytically useful and more transparently integrated in comparison with the data in the current NIPA and FFA tables, but they do not consider the new integrated data to be official estimates.

The main contribution of these tables is that they present a complete sequence of macroeconomic accounts that is based on consistent definitions, classifications, and accounting conventions. Although many of the terms that appear in these accounts also appear in the SNA, the definitions of the terms may vary, so users of these tables who are more familiar with SNA accounting standards than NIPA and FFA accounting standards should consult the documentation on these two last accounts to ensure that they understand exactly what is presented in the measures chosen for their analyses. (7)

Users of these tables should also note that a few of the SNA features that were mentioned in the previous section have not been fully adopted in the integrated accounts. First, the tables use a consistent set of sectors throughout the entire sequence of accounts, and these sectors are primarily based on definitions that are used in either the NIPAs or the FFAs. Second, each table begins by presenting gross value added by sector, but these values are only shown as the sum of production costs because the presentation is limited by the data that are currently available in the NIPAs. Third, additional work still needs to be done to more fully develop the revaluation and "other changes in volume" accounts because the data in the related integrated accounts are limited by the data that are currently available in the FFAs.

It is also worth noting that the sum of gross value added across the sectors of the domestic economy in these accounts equals the gross domestic income in the NIPAs rather than gross domestic product because the related measures for each sector are based solely on information from the income-side of the NIPAs.

The tables divide domestic institutions into six sectors-households and nonprofit institutions serving households, nonfinancial noncorporate business, nonfinancial corporate business, financial business, Federal Government, and state and local governments. The rest of this section discusses the tables for each of the sectors and for the rest of the world.

Households and nonprofit institutions serving households

The integrated accounts for households and nonprofit institutions serving households (NPISHs) cover the same institutions that are included in the NIPA household and institutions and FFA households and nonprofit sectors.

The first portion of the Current account for households and NPISHs shows the sector's contribution to the output of final goods and services in the domestic economy, which is measured as gross value added (table 1, line 1). Net value added is equal to gross value added less the consumption of fixed capital, and it equals compensation paid by households and NPISHs, taxes on production and imports less subsidies, and net operating surplus (lines 3-8).

Because production for this sector includes owner-occupied housing services in addition to domestic and nonprofit services, taxes on production and imports less subsidies includes property taxes paid less the subsidies received by both homeowners and NPISHs. Net operating surplus also includes the net interest payments and rental income associated with owner-occupied housing and fixed assets of NPISHs.

Net operating surplus is carried forward into the second portion of the current account, which derives a measure of net national income by adding the income accrued by households and NPISHs as a consequence of their involvement in the process of production or their ownership of assets that may be needed for production (lines 10-19). This income consists of net operating surplus, "compensation of employees (received)" and "property income (received)" (lines 10-14). For households and NPISHs, property income consists of interest receipts, dividend receipts, and withdrawals from the income of quasi-corporations, which is the sum of proprietors' income and the rental income of tenant-occupied housing, less interest payments.

Net national income is carried forward into the final two portions of the current account. The first portion derives disposable income by subtracting "current taxes on income and wealth, etc. (paid)," "social contributions (paid),' and net "other current transfers" from net national income (lines 20-26). The second portion derives net saving (line 28) by subtracting final consumption expenditures (line 27) from disposable income (line 26).

The information that is covered in the final three portions of the current account is similar to that provided in the NIPA personal income and outlays account. However, there are some important differences between the related accounts.

In the NIPAs, owner-occupied housing is essentially a subsector of the private enterprise account, where the related net interest and transfer payments are subtracted from value added to obtain the rental income of persons for owner-occupants. This measure is then carried forward (along with the rental income of persons from tenant-occupied housing and other rental income of persons) into the personal income and outlays account as a net source of income in the derivation of personal saving. In the integrated accounts, net operating surplus is carried forward into the second portion of the current account for households and NPISHs. The net interest and transfer payments that are associated with owner-occupied housing (along with the net interest associated with the fixed assets of NPISHs) are then effectively subtracted by including the payments and receipts that are associated with owner-occupied housing in the interest and transfer measures for the consistently defined sector.

Another difference between the related accounts is that they present different concepts of disposable income. In particular, disposable personal income in the NIPAs is calculated before the deduction of interest and other current transfer payments, but disposable income in the integrated accounts is calculated after the deduction of such transactions.

A final difference between the accounts is that the measure of net saving in the current account (line 28) can differ slightly from the related measure of personal saving in the NIPAs because personal saving is partly based on a cash-based accounting measure of wage and salaries. In the integrated accounts, net saving is partly based on an accrual-based accounting measure of wage and salaries (line 5).

Net saving is then carried forward into the capital account. As in the SNA, this account derives net lending or net borrowing for the sector by subtracting net capital formation (fixed investment) (line 32) from net saving and capital transfers (line 29). For households and NPISHs, net capital transfers consists of estate and gift taxes paid to the government and net migrants' transfers received by the rest of the world, which typically has a negative value. Purchases of consumer durable goods are also excluded from fixed investment, which is consistent with their treatment in the NIPAs and the SNA but not in the FFAs.

The capital account is followed by the financial account from which a measure of net lending or net borrowing for the sector can be derived by subtracting the net incurrence of liabilities from the net acquisition of financial assets. However, such a derivation results in a value for net lending or net borrowing that differs from that in the capital account because of differences in source data, timing of recorded flows, and other statistical differences between the accounts.

The SNA offers no guidance on how to treat the discrepancy between the two measures of net lending or net borrowing. In this table, as in the tables for the other sectors in the integrated accounts, the measure from the capital account is carried forward into the financial account, and the discrepancy between the two measures is included as the statistical discrepancy in the "other changes in volume" account (line 83). This provides consistency between changes in net worth that are recorded in the accumulation accounts and levels of net worth that are recorded on the balance sheets. By not forcing equality, the discrepancy between these measures also provides a crude measure of the effectiveness of future efforts to better align estimates in the accounts.

The differences between the two measures of net lending or net borrowing highlight the limitations of the accounts for this sector. Although the general trends of these two measures are similar, their values often differ by quite a bit, indicating that there are many statistical differences embedded in the accounts. These differences are not surprising because many of the flows for this sector in both the FFAs and the NIPAs are calculated residually, and differences in source data, timing of recorded flows, and many statistical differences in other sectors affect the estimates in this account.

In addition to the net lending or net borrowing discrepancy, the "other changes in volume" account includes net investment in consumer durable goods (line 81). As a result, such goods can be recorded on the balance sheet for the household sector while consistency with the SNA's exclusion of the purchases of such goods from measures of fixed investment can still be maintained.

The revaluation account (the final accumulation account) for the sector records nominal holding gains and losses for nonfinancial and financial assets (lines 84-94). One notable characteristic of this account is that it does not provide separate measures for changes in the value of land and structures. Instead, the account provides a single value for all real estate (line 85), because the agencies have not fully researched the best way to provide separate measures.

The revaluation account is followed by a measure for the change in net worth for the sector (line 95). As in the SNA, the value is equal to the sum of the net capital formation, net lending or net borrowing, "other changes in volume," and nominal holding gains or losses. The change in household and NPISH net worth is the same as that published in the FFAs, but the components differ. The net lending or net borrowing measure that is used in the calculation of net worth is from the capital account rather than from the financial account. The statistical discrepancy between the capital account and the financial account enters the calculation of the change in net worth through the "other changes in volume" account to bring the measure in line with what is reported in the FFAs.

The end-of-period stocks in the balance sheet account (lines 96-142) are similar to those published in the FFAs. The terminology for asset and liability items is consistent with international terminology, which should allow for easier comparisons across countries. In addition, financial instruments are grouped as recommended by the SNA.

Nonfinancial noncorporate business

The nonfinancial noncorporate business sector primarily consists of nonfinancial partnerships and sole proprietorships, including the noncorporate farms that are part of the FFA farm business subsector. However, it also includes the activities associated with tenant-occupied housing.

Since the accounts for this sector are structured in the same manner as those for the household and NPISHs sector, only a few noteworthy characteristics of the accounts for nonfinancial noncorporate businesses need to be mentioned.

Net operating surplus in this sector (table 2, line 8) consists of proprietors' income, net interest, business transfer payments associated with nonfinancial partnerships and sole proprietorships, and rental income associated with tenant-occupied housing.

Income generated in this sector is paid out to households as withdrawals from quasi-corporations (line 14). As a result, by construction, the sector has no net saving (line 20). However, there is capital formation for nonfinancial noncorporate businesses, which is financed by either "borrowing" from the income of quasi-corporations that has been distributed to households or borrowing though financial markets.

Capital formation financed by borrowing from the income of quasi-corporations is recorded in the financial account as equity in noncorporate business (line 54). Because of data limitations, the value of equity in noncorporate business is residually determined as the amount that is necessary to finally bring net borrowing from the financial account into alignment with net borrowing from the capital account. As a result, there is no statistical discrepancy between the borrowing measures to appear in the "other changes in volume" account for this sector.

The difficulties associated with measuring equity in noncorporate business have little effect on the measurement of the change in net worth for the sector (line 71) because total changes in net worth are mainly the result of changes in the prices of real estate that are recorded in the revaluation account (line 63).

Nonfinancial corporate business

The nonfinancial corporate business sector consists of the same nonfinancial institutions that are classified into the corporate sector in the NIPAs, and it includes the corporate farms that are part of the FFAs farm business subsector.

In the first portion of the current account, net operating surplus (table 3, line 8) consists of corporate profits, net interest, and business transfer payments that are associated with the nonfinancial corporations in the sector.

The remaining portions of the current account cover the same type of information that is presented for private enterprises in the NIPA summary accounts. However, there are a few differences that relate to the heavier use of SNA terminology and concepts in the integrated accounts. First, measures of corporate profits are fairly prominent in the NIPAs, but there are no equivalents in the current account for this sector. Second, undistributed corporate profits are called net saving in this account (line 24). Third, because there are no final consumption expenditures for corporations, net saving is equal to the SNA concept of disposable income (line 23).

The structure of the capital account is the same as that for households and NPISHs, but a few characteristics of the account for this sector are worth noting. First, this capital account lacks the measure of internal funds (after-tax profits plus depreciation allowances) that appears in the FFAs and that is used to derive the sector's financing gap. This gap, which is measured as the difference between capital expenditures and the sum of U.S. internal funds and inventory valuation adjustment, is sometimes used as an indicator of the corporate sector's need to borrow. (8) Net lending or net borrowing (line 33) is almost the same as the financing gap, but it includes undistributed profits of foreign subsidiaries, which are excluded from the FFA calculation of U.S. internal funds.

A final noteworthy characteristic about the capital account is related to nonproduced nonfinancial assets. These are claims on resources that are necessary for production but that have not been produced, such as land, the electromagnetic spectrum, and offshore drilling rights that are purchased from the government. The stocks of such assets are excluded from the balance sheet account, but the transactions associated with the net acquisition of such assets are included in the capital account (line 31). By including this flow in the statistical discrepancy in net lending or net borrowing (line 79), the accounts maintain consistency between the change in net worth (line 95) that is derived from items in the capital, financial, "other changes in volume" and revaluation accounts and the levels of net worth reported on the balance sheets while still providing information on transfers of these types of assets.

Not only is the discrepancy between the net lending or net borrowing measures affected by the accounting conventions used for nonproduced non financial assets, but it is also affected by the boundary that effectively separates nonfinancial institutions from financial institutions within the accounts. In the current account, the measures are largely based on tax return data, and the sectoring of consolidated returns is based on the predominant form of business. In the financial account, the measures also use survey and regulatory data to effectively split financial subsidiaries from consolidated returns of parent corporations that are primarily engaged in nonfinancial activities. As a result, some of the financial activities of corporate subsidiaries are included in the current and capital accounts for the nonfinancial corporate business sector but are excluded from the sector's financial account.

The lack of a consistent definition of nonfinancial and financial business is a limitation of the integrated accounts. To some extent, it impedes an understanding about precisely how real activity in the economy is being financed. It also limits more precise analyses of how financial risk is spread across the economy.

Because the measures of sector net worth in the integrated accounts are based on the SNA definition, its value for nonfinancial corporations can be positive or negative, depending on the market value of equity and on the recorded value of assets and other liabilities. The values of net worth for 2003-2005 presented in this paper are positive, but the tables on BENs Web site show that this sector's net worth for 1995-2001 was negative; these negative values are consistent with the general finding that the market value of many firms greatly exceeded the recorded net value of shareholder's equity.

Financial business

The financial business sector consists of the monetary authority, depository institutions, insurance and private pension funds, and all other financial intermediaries that are included in the FFA financial sectors. It includes the financial sole proprietorships and partnerships that are excluded from the NIPA corporate sector.

In the current account, the measure of net operating surplus (table 4, line 8) consists of corporate profits, net interest, and business transfer payments of financial corporate business and proprietors' income, net interest, and business transfer payments of unincorporated financial businesses.

The remaining accounts for this sector are mainly structured the same way as those for the nonfinancial corporate sector. However, in the financial account, intrasector assets and liabilities--such as mortgage-backed securities issued by agencies and GSE-backed mortgage pools bought by commercial banks--are included as both an asset (line 36) and a liability (line 52). It is worth noting that there are sizable revaluations of financial assets (line 74) and financial liabilities (line 78) in the revaluation account primarily because of the sector's sizable equity holdings.

The net worth for financial business (line 134) is calculated from the same factors as those for the household sector with one notable exception. Because of data limitations, the change in net worth (line 85) excludes revaluations of real estate, and the level excludes the market value of real estate but includes the replacement cost of nonresidential structures.

Federal Government and state and local governments

The government sectors consist of the same governmental units that are included in the FFA government sectors. As a result, these sectors include the government business enterprises that are included in the NIPA government sector, but they exclude government retirement funds, including the Federal retirement funds that were recently moved into the their own FFA sector.

In the first portion of the current accounts, net operating surplus (line 7 in tables 5 and 6) consists of the current surplus of the government business enterprises that are included in each sector.

The remaining portions of the current accounts (lines 8-24 in tables 5 and 6) are structured in the same manner as those for the other sectors of the domestic economy in the integrated accounts. As a result, the organization of these transactions differs from the presentation of government receipts and expenditures in the NIPAs. Most notably, the second portion of these accounts do not provide measures of total receipts and expenditures as does the NIPA account in the derivation of its measure of government saving.

The measure of net saving in the current accounts (line 24 in tables 5 and 6) can differ slightly from the related measure of net government saving in the NIPAs because net government saving is partly based on a measure of wage and salary disbursements. (9) In the integrated accounts, like in the SNA, government saving is partly based on a measure of wage and salary accruals.

The capital accounts for the government sectors include the net acquisition of nonproduced nonfinancial assets because they serve as the counterpart to the purchases of such assets from the nonfinancial corporate sector (line 31). For the Federal Government sector, these assets mainly consist of sales of electromagnetic spectrum and offshore drilling rights. For the state and local government sector, these assets mainly consist of sales of land and access rights. Like in the capital account for the nonfinancial corporate sector, these flows are included in the net lending or net borrowing discrepancy in the "other changes in volume" account to maintain consistency between the change in net worth and the balance sheet accounts for the government sectors.

The discrepancies between the two net lending or net borrowing measures for Federal Government tend to be small, mainly reflecting the generally high quality of data available for the Federal Government. However, the small discrepancies also reflect timing adjustments that were recently made to the FFAs to improve their consistency with the NIPAs. In contrast, the discrepancies for the state and local government sector tend to be large mainly because of source data limitations, but it is possible that closer coordination on estimation methodologies between the two agencies could further integrate these accounts.

For both government sectors, the measures of net worth (line 117 in table 5 and line 103 in table 6) are limited because they only include the replacement costs of reproducible fixed assets (primarily, nonresidential structures and equipment and software). The Federal Government controls a vast amount of land, natural resources, and spectrum rights that are not accounted for in its revaluation and balance sheet accounts. The U.S. Office of Management and Budget provides supplemental information on the real estate owned by the Federal Government, but these data are provided for illustrative purposes and have not been fully vetted for use in the accounts. (10) In addition, there are no estimates of the same types of assets for state and local governments. (11)

Rest of the world

The accounts for the rest of the world present a mirror image of the U.S. international transactions accounts published by BEA. In the current account, net saving or the current external balance (table 7, line 8) is calculated by subtracting foreign outlays to U.S. residents (line 5) from the foreign income received from U.S. residents (line 1). In the capital account, net capital transfers (line 10) are added to net saving (line 9) and acquisition of nonproduced nonfinancial assets (line 11) is subtracted to arrive at the net lending or net borrowing position for the rest of the world (line 12).

The magnitude of the net lending or net borrowing position of the rest of the world should equal that of the total domestic economy. However, this usually does not occur in the integrated macroeconomic accounts, primarily because the accounts rely on information from the product side of the NIPAs for their measures of capital formation and on information from the income side for their measure of saving. As a result, the discrepancy between these two sides of the NIPA domestic income and product account explains almost all of the differences between the magnitudes of the related measures. Eliminating the differences that cannot be explained by the difference between the income and product sides of the NIPAs and that appear in some of the later periods is a high priority of the agencies.

The financial, "other changes in volume" and revaluation accounts for the rest of the world are structured in the same way as the related accounts for the domestic economy. The information in these accounts is similar to that in the FFAs; the same types of financial transactions are netted against one another in these accounts.

Like the flows that are recorded in the other accounts for the rest of the world, the balance sheet account for this sector presents a mirror image of the international investment position reported in the international transactions accounts. In particular, net worth for this sector (line 120) is equal to the accumulated value of foreign-owned financial assets in the United States less the accumulated value of U.S. financial assets owned abroad.

Uses of the New Tables

The framework for the integrated macroeconomic accounts facilitates many types of analyses of U.S. macroeconomic activity, which are more difficult to conduct with the separate NIPAs and FFAs. This section briefly mentions a few examples.

Sectoral net lending or net borrowing. The FFAs provide a good source of information on financial flows within the economy. However, neither the FFAs nor the NIPAs present the net lending or net borrowing position of all the major sectors of the U.S. economy as is done in the integrated accounts. Coupled with the asset and liability information that is also presented, the complete set of net lending or net borrowing information in the integrated accounts facilitates analyses of how resources are mobilized to finance investment in the sectors of the economy.

The integrated accounts show that among the domestic sectors of the U.S. economy, households and nonprofit institutions, nonfinancial noncorporate businesses, the Federal Government, and state and local governments have been net borrowers in recent years when investment in these sectors has exceeded saving. Net lending to these sectors has been provided by nonfinancial corporations, financial business, and the rest of the world.

The integrated accounts also show that in recent years, the net lending of nonfinancial corporations has been quite unusual: Net saving has exceeded net capital formation by an average of $43.6 billion each year in 2003-2005. Funds raised in credit and equity markets were also unusually low as borrowing in the form of loans and debt securities was mainly offset by retirements of corporate equities.

Household saving. Economists have long recognized that both current income and wealth may affect the consumption and saving decisions of households. In addition, many of the recent discussions of trends in U.S. economic growth and personal saving have also appealed to this notion as increases in home equity may have helped bolster current consumption expenditures. The integrated accounts facilitate analyses of the process by which current income and the composition of wealth affect consumption and saving behavior by presenting the composition of income and wealth for households and NPISHs in a single table for a consistently defined sector.

The integrated accounts show that the net worth of households and NPISHs increased $12.9 trillion in 2003-2005, even as the saving rate for this sector fell to historically low levels. This increase was mainly accounted for by a $4.9 trillion increase in the value of real estate and a $4.5 trillion increase in the values of shares and other equity that were due to changes in the prices of these assets.

The low saving rates for households and nonprofit institutions were associated with large volumes of mortgage borrowing, which averaged $984.4 billion each year in 2003-2005. However, the increase in mortgage debt of households and nonprofit institutions was exceeded by an average annual increase of $2.2 trillion in the value of real estate, which includes net investment. Because most of the real estate in this sector is associated with owner-occupied housing, net housing wealth, defined as the difference between owner-occupied housing values and related mortgage debt, rose substantially. (12)

Future Initiatives

The integrated macroeconomic accounts represent a substantial effort by both the Bureau of Economic Analysis and the Federal Reserve Board, but there are a number of areas where future development in the accounts may be made. Because conceptual integration needs to be matched by statistical integration, some improvements are likely to come from the more general work of both agencies to improve the quality of their official estimates. Other improvements are likely to come from the continued joint efforts by the agencies to tighten the integration between the NIPAs and the FFAs.

BEA's strategic plan outlines a number of research activities that are expected to result in improvements in the quality of the NIPA-based measures. Work is already under way to see whether the times at which government fixed investment and changes in private inventories are recorded in the NIPAs can be made more consistent. Research is also being conducted to see whether the estimates of government consumption of fixed capital can be improved through the use of an alternative estimation methodology. BEA is also planning an intensive review of the consistency between the NIPA estimates of interest flows and the FFA estimates of interest-bearing assets.

Among other prospective projects that may improve the integration of these accounts, the Federal Reserve Board staff is investigating whether changes in the wide variety of activities that are currently included in the measures of miscellaneous assets for the nonfinancial business sector can be more appropriately divided in the FFAs into flows, revaluations, and "other changes in volume." Although this work involves a considerable amount of effort and the development of new comprehensive source data, it could lead to a substantial improvement in the accounts, and perhaps it could help to alleviate the source of the current discrepancies between the measures of sectoral net lending or net borrowing in the current account and the financial account.

One particular interest relates to the identification of debt writedowns. These accounting items are currently included in the flows for the debt items that are presented in the FFA financial accounts, but they would be better accounted for separately as "other changes in volume." The separate identification of debt writedowns could improve the amount of detail that is provided in the "other changes in volume" account and may also reduce the discrepancies between the measures of the net lending or net borrowing positions of corporations in the accounts.

Other interests relate to developing measures that value bonds at current market prices and to providing separate information on the revaluation of residential land and structures. Accordingly, Federal Reserve Board staff has been conducting research on these two issues to improve consistency between the FFAs and the SNA.

The agencies are jointly advancing other efforts to improve the integration of the NIPAs and the FFAs. These efforts include working together to examine the possible use of alternative data sources to improve the NIPA estimates for state and local governments when more comprehensive data from the Census of Governments are not available. In addition, the agencies plan to thoroughly examine the use of data from the BEA fixed assets and international transactions accounts in the FFAs to ensure that the information that is used in these accounts is consistent with the information used in the NIPAs. This work is expected to eliminate the small discrepancies between the net lending or net borrowing position of the domestic economy and the rest of the world that cannot currently be explained by the statistical difference between the income and product sides in the NIPAs.

Joint efforts are also being made to examine whether information from corporate financial statements can be used to improve the sectoring of activities associated with financial subsidiaries. It is hoped that this research would allow for the development of estimates for the integrated macroeconomic accounts that consistently include the activities of financial subsidiaries in the financial sector.

A final topic that the agencies are jointly investigating is whether estimates of stocks of nonproduced nonfinancial assets can be developed for the balance sheets. Although both agencies would like to develop a set of estimates for the wide array of such assets, there are a number of statistical and methodological issues that cannot immediately be overcome.

Tables 1-7 follow.

Data Availability

The tables in this paper present the integrated macroeconomic accounts for the six major sectors of the domestic economy and the rest of the world for 2003-2005. A set of these tables that present data for 1960-2005 are available on BEA's public Web site at <www.bea.gov/national/nipaweb/Ni_FedBeaSna/ Index.asp>. In addition, this Web site includes a table that presents a current account for the total domestic economy and a table that presents selected aggregates.

(1.) See Commission of the European Communities, International Monetary Fund, Organisation for Economic Co-operation and Development, United Nations, and the World Bank, System of National Accounts 1993 (Brussels/Luxembourg, New York, Paris, and Washington, DC, 1993).

For a discussion of the history of this project and a prototype of the integrated accounts, see Albert M. Teplin, Rochelle Antoniewicz, Susan Hume McIntosh, Michael G. Palumbo, Genevieve Solomon, Charles Ian Mead, Karin Moses, and Brent Moulton, "Integrated Macroeconomic Accounts for the United States: Draft SNA-USA," in A New Architecture for the U.S. National Accounts, eds. Dale W. Jorgenson, J. Steven Landefeld, and William D. Nordhaus (University of Chicago Press, 2006).

(2.) For a more detailed discussion of the differences between the NIPAs and the SNA, see Charles Ian Mead, Karin E. Moses, and Brent R. Moulton, "The NIPAs and the System of National Accounts," SURVEY OF CURRENT BUSINESS 84 (December 2004): 17-32.

(3.) Government-sponsored enterprises consist of Federal home loan banks, Federal National Mortgage Association, Federal Agricultural Mortgage Corporation, Farm Credit System, the Financing Corporation, and the Resolution Funding Corporation, and they included the Student Loan Marketing Association until the fourth quarter of 2004, when it became privatized.

Government business enterprises are government agencies that cover a substantial portion of their operating costs by selling goods and services to the public and that maintain their own separate financial records, such as the U.S. Postal Service, state and local utility companies, and state and local transit authorities.

(4.) Although government-sponsored enterprises may have been initially established by the government, they are treated as financial businesses in U.S. macroeconomic accounts because they are independently controlled and issue their own debt.

(5.) Past efforts by the Federal Reserve Board have found that this exclusion was unlikely to have much of an impact on net worth. However, this work predates more recent financial developments.

(6.) Some argue that such a comparison often does not provide useful information, particularly in more recent years, because the balance sheets exclude many types of intangible assets, such as consumer databases and firm-specific training, that have likely grown in more recent years and that may be an important determinant of equity market value.

(7.) For details on the NIPAs, see "A Guide to the National Income and Product Accounts of the United States" and the various methodology papers that are available at <www.bea.gov>. For details on the FFAs, see Guide to the Flow of Funds Accounts (Publications Services, Board of Governors of the Federal Reserve System, 2000); <www.federalreserve.gov/ releases/zl/>.

(8.) Because companies have other financial assets at their disposal, as well as discretion over equity issuance and share repurchases, the empirical relationship between the financing gap and corporate borrowing is often weak.

(9.) Although wages and salaries do not directly appear in the government current receipts and expenditures accounts of the NIPAs, they are included as part of the measure of consumption expenditures that is used to derive the measures of net government saving. The same is true for the measures of final consumption expenditures that are used to derive government net saving in the integrated accounts.

(10.) See Executive Office of the President, Office of Management and Budget, "Table 3-1. Government Assets and Liabilities," in Analytical Perspectives of the U.S. Government, Fiscal Year 2007 (Washington, DC: U.S. Government Printing Office, 2006): 182.

(11.) Only recently has the Government Accounting Standards Board begun to require state and local governments to create balance sheets and determine the value of their assets.

(12.) Flow of funds table B. 100 indicates that usually more than 90 percent of the value of real estate that is recorded on the balance sheet for households and nonprofit institutions is related to owner-occupied housing.

Table 1. Households and Nonprofit Institutions Serving Households
[Billions of dollars]

 Line 2003

 Current account

Gross value added 1 1,269.2

Less: Consumption of fixed capital 2 201.7

Equals: Net value added 3 1,067.5
 Compensation paid by households and NPISHs 4 503.5
 Wages and salaries 5 436.8
 Employers' social contributions 6 66.7
 Taxes on production and imports less subsidies 7 128.0
 Operating surplus, net 8 436.0

Net national income/balance of primary incomes,
 net 9 8,427.9
 Operating surplus, net 10 436.0
 Compensation of employees (received) 11 6,325.4
 Wages and salaries 12 5,127.7
 Employers' social contributions 13 1,197.7
 Property income (received) 14 2,201.1
 Interest 15 915.4
 Distributed income of corporations 16 1,285.8
 Dividends 17 422.6
 Withdrawals from income of
 quasi-corporations (1) 18 863.2
 Less: Uses of property income (interest paid) 19 534.6

Net national income/balance of primary incomes,
 net 20 8,427.9
 Less: Current taxes on income, wealth, etc.
 (paid) 21 1,001.1
 Plus: Social benefits (received) 22 1,316.7
 Less: Social contributions (paid) 23 778.6
 Plus: Other current transfers (received) 24 34.3
 Less: Other current transfers (paid) 25 105.7

Equals: Disposable income, net 26 7,893.5
 Less: Final consumption expenditures 27 7,703.6

Equals: Net saving 28 189.9

 Capital account

Net saving and capital transfers 29 175.1
 Net saving 30 189.9
 Capital transfers received (net) 31 -14.8

Capital formation, net 32 382.2
 Gross fixed capital formation, excluding
 consumer durables 33 583.9
 Residential 34 492.7
 Nonresidential (nonprofit organizations) 35 91.2
 Less: Consumption of fixed capital 36 201.7

Net lending or net borrowing, capital account
 (29-32) 37 -207.1

 Financial account

Net lending or net borrowing, capital account
 (line 37) 38 -207.1

Net acquisition of financial assets 39 920.7

 Currency and deposits 40 278.5
 Currency and transferable deposits 41 -58.8
 Other deposits 42 337.3
 Foreign deposits 43 2.2
 Time and savings deposits 44 335.1

 Securities other than shares 45 110.3
 Open market paper 46 -4.5
 U.S. savings bonds 47 8.9
 Treasury securities 48 19.8
 Agency- and GSE-backed securities (2) 49 144.4
 Municipal securities 50 29.0
 Corporate and foreign bonds 51 -87.4

 Loans 52 74.3
 Short term (security credit) 53 62.7
 Long term (mortgages) 54 11.6

 Shares and other equity 55 148.5
 Corporate equities 56 -2.0
 Mutual fund shares 57 240.5
 Money market fund shares 58 -110.1
 Equity in noncorporate business 59 20.2

 Insurance technical reserves 60 309.1
 Net equity in life insurance and pension
 funds 61 267.1
 Net equity in life insurance reserves 62 66.8
 Net equity in pension fund reserves 63 200.3
 Prepayments of premiums and reserves against
 claims 64 42.0
 Net equity in reserves of
 property-casualty insurance companies 65 19.5
 Net equity in other life insurance company
 reserves 66 13.9
 Net equity in Uniformed Services Retiree
 Health Care Fund 67 8.6

Net incurrence of liabilities 68 1,018.4

 Securities other than shares (municipals) 69 14.1

 Loans 70 998.6
 Short term 71 134.1
 Consumer credit 72 104.0
 Bank loans n.e.c. 73 -2.6
 Other loans and advances 74 -1.6
 Security credit 75 34.3
 Long term (mortgages) 76 864.4

 Insurance technical reserves (unpaid premiums) 77 0.9

 Other accounts payable (trade debt) 78 4.8

Addendum:
 Net lending or net borrowing, financial
 account (39-08) 79 -97.7

 Other changes in volume account

Total other volume changes 80 514.9
 Net investment in consumer durable goods 81 205.7
 Other volume changes 82 199.8
 Less: Statistical discrepancy (37-[39-68]) (3) 83 -109.4

 Revaluation account

 Nonfinancial assets 84 1,122.3
 Real estate 85 1,220.5
 Consumer durable goods 86 -98.4
 Equipment and software 87 0.2

 Financial assets 88 3,342.8
 Shares and other equity 89 1,912.8
 Corporate equities 90 1,078.9
 Mutual fund shares 91 424.4
 Equity in noncorporate business 92 409.5
 Insurance technical reserves 93 1,429.9

Changes in net worth due to nominal holding
 gains or losses 94 4,465.1

 Changes in balance sheet account

Change in net worth (32+37+80+94) 95 5,155.1

 Balance sheet account (end of period)

Total assets 96 53,780.0

 Nonfinancial assets 97 20,238.8
 Real estate 98 16,675.0
 Consumer durable goods 99 3,380.3
 Equipment and software 100 183.4

 Financial assets 101 33,541.1

 Currency anddeposits 102 4,330.3
 Currency and transferable deposits 103 286.8
 Other deposits 104 4,043.5
 Foreign deposits 105 52.1
 Time and savings deposits 106 3,991.3

 Securities other than shares 107 2,381.7
 Open market paper 108 105.9
 U.S. savings bonds 109 203.8
 Treasury securities 110 236.8
 Agency- and GSE-backed securities (2) 111 388.5
 Municipal securities 112 707.7
 Corporate and foreign bonds 113 739.0

 Loans 114 623.2
 Short term (security credit) 115 475.4
 Long term (mortgages) 116 147.9

 Shares and other equity 117 15,058.0
 Corporate equities 118 5,613.1
 Mutual fund shares 119 3,085.4
 Money market fund shares 120 959.8
 Equity in noncorporate business 121 5,399.6

 Insurance technical reserves 122 11,147.9
 Net equity in life insurance and pension
 funds 123 10,685.9
 Net equity in life insurance reserves 124 1,013.2
 Net equity in pension fund reserves 125 9,672.7
 Prepayments of premiums and reserves
 against claims 126 462.0
 Net equity in reserves of
 property-casualty insurance companies 127 252.0
 Net equity in other life insurance
 company reserves 128 199.5
 Net equity in Uniformed Services Refiree
 Health Care Fund 129 10.5

Total liabilities and net worth 130 53,780.0

 Liabilities 131 9,812.0

 Securities other than shares (municipals) 132 178.3

 Loans 133 9,455.9
 Short term 134 2,457.3
 Consumer credit 135 2,117.0
 Bank loans n.e.c. 136 38.8
 Other loans and advances 137 119.0
 Security credit 138 182.5
 Long term (mortgages) 139 6,998.6

 Insurance technical reserves
 (unpaid premiums) 140 20.9

 Other accounts payable (trade debt) 141 156.8

 Net worth 142 43,968.0

 2004 2005

 Current account

Gross value added 1,356.5 1,419.6

Less: Consumption of fixed capital 235.9 293.5

Equals: Net value added 1,120.6 1,126.1
 Compensation paid by households and NPISHs 529.8 552.4
 Wages and salaries 458.9 477.2
 Employers' social contributions 70.9 75.3
 Taxes on production and imports less subsidies 136.6 142.3
 Operating surplus, net 454.1 431.4

Net national income/balance of primary incomes,
 net 8,930.9 9,357.9
 Operating surplus, net 454.1 431.4
 Compensation of employees (received) 6,650.3 7,030.3
 Wages and salaries 5,377.1 5,664.8
 Employers' social contributions 1,273.2 1,365.5
 Property income (received) 2,385.6 2,528.4
 Interest 892.1 946.3
 Distributed income of corporations 1,493.5 1,582.1
 Dividends 537.1 574.4
 Withdrawals from income of
 quasi-corporations (1) 956.5 1,007.7
 Less: Uses of property income (interest paid) 559.1 632.2

Net national income/balance of primary incomes,
 net 8,930.9 9,357.9
 Less: Current taxes on income, wealth, etc.
 (paid) 1,049.8 1,203.1
 Plus: Social benefits (received) 1,398.4 1,480.9
 Less: Social contributions (paid) 826.4 880.6
 Plus: Other current transfers (received) 28.1 45.7
 Less: Other current transfers (paid) 110.4 93.3

Equals: Disposable income, net 8,370.9 8,707.5
 Less: Final consumption expenditures 8,211.5 8,742.4

Equals: Net saving 159.3 -34.8

 Capital account

Net saving and capital transfers 143.6 -51.1
 Net saving 159.3 -34.8
 Capital transfers received (net) -15.7 -16.2

Capital formation, net 435.0 470.9
 Gross fixed capital formation, excluding
 consumer durables 670.9 764.4
 Residential 574.0 663.5
 Nonresidential (nonprofit organizations) 96.8 100.9
 Less: Consumption of fixed capital 235.9 293.5

Net lending or net borrowing, capital account
 (29-32) -291.4 -522.0

 Financial account

Net lending or net borrowing, capital account
 (line 37) -291.4 -522.0

Net acquisition of financial assets 876.2 580.3

 Currency and deposits 374.8 380.9
 Currency and transferable deposits 32.2 -10.5
 Other deposits 342.6 391.4
 Foreign deposits 5.4 5.2
 Time and savings deposits 337.2 386.2

 Securities other than shares 193.2 200.2
 Open market paper 30.2 28.1
 U.S. savings bonds 0.6 0.7
 Treasury securities 64.7 -113.1
 Agency- and GSE-backed securities (2) 83.0 221.3
 Municipal securities 33.2 75.0
 Corporate and foreign bonds -18.5 -11.8

 Loans 115.3 2.1
 Short term (security credit) 103.0 -10.9
 Long term (mortgages) 12.4 13.0

 Shares and other equity -122.5 -200.0
 Corporate equities -259.1 -456.3
 Mutual fund shares 249.0 266.0
 Money market fund shares -56.4 53.8
 Equity in noncorporate business -56.1 -63.4

 Insurance technical reserves 315.3 197.1
 Net equity in life insurance and pension
 funds 274.5 168.7
 Net equity in life insurance reserves 33.1 16.1
 Net equity in pension fund reserves 241.4 152.6
 Prepayments of premiums and reserves against
 claims 40.9 28.4
 Net equity in reserves of
 property-casualty insurance companies 21.1 22.1
 Net equity in other life insurance company
 reserves 11.4 9.5
 Net equity in Uniformed Services Retiree
 Health Care Fund 8.4 -3.1

Net incurrence of liabilities 1,176.6 1,209.9

 Securities other than shares (municipals) 10.3 16.5

 Loans 1,164.8 1,190.4
 Short term 163.1 83.4
 Consumer credit 116.9 91.3
 Bank loans n.e.c. -15.7 23.7
 Other loans and advances 0.4 0.0
 Security credit 81.5 -31.7
 Long term (mortgages) 981.7 1,107.1

 Insurance technical reserves (unpaid premiums) 1.6 1.0

 Other accounts payable (trade debt) 2.0 2.0

Addendum:
 Net lending or net borrowing, financial
 account (39-08) -302.4 -629.6

 Other changes in volume account

Total other volume changes 209.6 150.2
 Net investment in consumer durable goods 208.2 210.2
 Other volume changes 12.5 47.6
 Less: Statistical discrepancy (37-[39-68]) (3) 11.1 107.6

 Revaluation account

 Nonfinancial assets 1,652.8 1,986.4
 Real estate 1,674.8 2,025.8
 Consumer durable goods -21.7 -39.0
 Equipment and software -0.3 -0.3

 Financial assets 1,988.4 1,713.3
 Shares and other equity 1,251.5 1,323.0
 Corporate equities 361.2 232.7
 Mutual fund shares 276.3 244.9
 Equity in noncorporate business 614.1 845.6
 Insurance technical reserves 736.8 390.3

Changes in net worth due to nominal holding
 gains or losses 3,641.2 3,699.7

 Changes in balance sheet account

Change in net worth (32+37+80+94) 3,994.4 3,798.8

 Balance sheet account (end of period)

Total assets 58,967.7 63,975.4

 Nonfinancial assets 22,523.9 25,173.1
 Real estate 18,759.0 21,222.6
 Consumer durable goods 3,566.8 3,738.0
 Equipment and software 198.1 212.5

 Financial assets 36,443.8 38,802.3

 Currency anddeposits 4,730.5 5,110.9
 Currency and transferable deposits 319.0 308.1
 Other deposits 4,411.5 4,802.8
 Foreign deposits 57.5 62.7
 Time and savings deposits 4,353.9 4,740.1

 Securities other than shares 2,587.7 2,853.1
 Open market paper 136.1 164.2
 U.S. savings bonds 204.4 205.1
 Treasury securities 358.3 342.1
 Agency- and GSE-backed securities (2) 435.3 638.8
 Municipal securities 740.9 816.0
 Corporate and foreign bonds 712.6 687.0

 Loans 738.6 740.7
 Short term (security credit) 578.3 567.4
 Long term (mortgages) 160.2 173.3

 Shares and other equity 16,187.1 17,310.1
 Corporate equities 5,715.2 5,491.6
 Mutual fund shares 3,610.7 4,121.4
 Money market fund shares 903.5 957.3
 Equity in noncorporate business 5,957.7 6,739.9

 Insurance technical reserves 12,200.0 12,787.4
 Net equity in life insurance and pension
 funds 11,697.2 12,259.3
 Net equity in life insurance reserves 1,060.4 1,082.6
 Net equity in pension fund reserves 10,636.8 11,176.7
 Prepayments of premiums and reserves
 against claims 502.8 528.1
 Net equity in reserves of
 property-casualty insurance companies 273.0 295.1
 Net equity in other life insurance
 company reserves 211.0 217.3
 Net equity in Uniformed Services Refiree
 Health Care Fund 18.8 15.7

Total liabilities and net worth 58,967.7 63,975.4

 Liabilities 11,005.4 12,214.2

 Securities other than shares (municipals) 188.6 205.1

 Loans 10,635.5 11,825.9
 Short term 2,640.4 2,723.8
 Consumer credit 2,233.9 2,325.3
 Bank loans n.e.c. 23.1 46.8
 Other loans and advances 119.4 119.4
 Security credit 264.0 232.3
 Long term (mortgages) 7,995.1 9,102.2

 Insurance technical reserves
 (unpaid premiums) 22.5 22.4

 Other accounts payable (trade debt) 158.8 160.8

 Net worth 47,962.4 51,761.2

(1.) Consists of rental income of tenant-occupied housing and
proprietors' income. Quasi-corporations are unincorporated
enterprises that function as if they were corporations; they
primarily cover their operating costs through sales, and they
keep a complete set of financial records.

(2.) Government-sponsored enterprises (GSEs) consist of Federal Home
Loan Banks, Federal National Mortgage Association, Federal Home Loan
Mortgage Corporation, Federal Agricultural Mortgage Corporation,
Farm Credit System, the Financing Corporation, and the Resolution
Funding Corporation, and they included the Student Loan Marketing
Association until it was fully privatized in the fourth quarter
of 2004.

(3.) The statistical discrepancy is the difference between net
lending or net borrowing derived in the capital account and the
same concept derived in the financial account. The discrepancy
reflects differences in source data, timing of recorded flows,
and other statistical differences between the capital and financial
accounts.

NPISHs Nonprofit institutions serving households

n.e.c. Not elsewhere classified

Table 2. Nonfinancial Noncorporate Business
[Billions of dollars]

 Line 2003

 Current account

Gross value added 1 1,681.6

Less: Consumption of fixed capital 2 150.8

Equals: Net value added 3 1,530.9
 Compensation of employees (paid) 4 439.8
 Wages and salaries 5 380.0
 Employers' social contributions 6 59.7
 Taxes on production and imports less subsidies 7 96.2
 Operating surplus, net 8 994.9

Net national income/balance of primary incomes,
 net 9 15.7
 Operating surplus, net 10 994.9
 Property income (interest received) 11 14.8
 Less: Uses of property income (paid) 12 994.0
 Interest 13 183.6
 Withdrawals from income of quasi-corporations
 (1) 14 810.4
 Reinvested earnings on foreign direct
 investment 15 0.0
 Rents on land and natural resources 16 0.0

Net national income/balance of primary incomes,
 net 17 15.7
 Less: Other current transfers (paid) 18 15.7

Equals: Disposable income, net 19 0.0

Equals: Net saving 20 0.0

 Capital account

Net saving 21 0.0

Capital formation, net 22 64.2
 Gross fixed capital formation 23 213.9
 Nonresidential 24 137.9
 Residential 25 76.0
 Less: Consumption of fixed capital 26 150.8
 Change in inventories 27 1.1

Net lending or net borrowing, capital account
 (21-22) 28 -64.2

 Financial account

Net lending or net borrowing (line 28) 29 -64.2

Net acquisition of financial assets 30 88.5

 Currency and deposits 31 48.5
 Currency and transferable deposits 32 4.7
 Time and savings deposits 33 43.8

 Securities other than shares 34 1.3
 Treasury securities 35 2.0
 Municipal securities 36 -0.7

 Loans 37 -0.2
 Short term (consumer credit) 38 0.0
 Long term (mortgages) 39 -0.2

 Shares and other equity 40 -7.6
 Money market mutual fund shares 41 -8.2
 Equity in government-sponsored enterprises (2) 42 0.6

 Insurance technical reserves (3) 43 8.0

 Other accounts receivable 44 38.4
 Trade receivables 45 -24.2
 Other (miscellaneous assets) 46 62.6

Net incurrence of liabilities 47 152.7

 Loans 48 104.1
 Short term 49 15.9
 Bank loans n.e.c. 50 10.7
 Other loans and advances 51 5.2
 Long term (mortgages) 52 88.2

 Shares and other equity 53 49.6
 Equity in noncorporate business 54 49.9
 Foreign direct investment in the United States 55 -0.2

 Other accounts payable 56 -1.0
 Trade payables 57 -23.9
 Taxes payable 58 -0.4
 Other (miscellaneous liabilities) 59 23.3

Addendum:
 Net lending or net borrowing, financial account
 (30-47) 60 -64.2

 Other changes in volume account

Total other volume changes 61 15.7

 Revaluation account

 Nonfinancial assets 62 349.5
 Real estate 63 355.4
 Residential 64 284.7
 Nonresidential 65 70.6
 Equipment and software 66 -7.4
 Residential 67 -1.4
 Nonresidential 68 -6.0
 Inventories 69 1.5

Changes in net worth due to nominal holding gains
 or losses 70 349.5

 Changes in balance sheet account

Change in net worth (22+28+61+70) 71 365.2

 Balance sheet account (end of period)

Total assets 72 7,837.0

 Nonfinancial assets 73 6,028.7
 Real estate 74 5,430.7
 Residential (4) 75 4,021.8
 Nonresidential (5) 76 1,408.9
 Equipment and software 77 527.2
 Residential 78 40.3
 Nonresidential 79 486.9
 Inventories 80 70.8

 Financial assets 81 1,808.3

 Currency and deposits 82 502.7
 Currency and transferable deposits 83 189.7
 Time and savings deposits 84 313.0

 Securities other than shares 85 47.5
 Treasury securities 86 44.9
 Municipal securities 87 2.7

 Loans 88 26.0
 Short term (consumer credit) 89 0.0
 Long term (mortgages) 90 26.0

 Shares and other equity 91 57.4
 Money market mutual fund shares 92 53.1
 Equity in government-sponsored enterprises
 (2) 93 4.3

 Insurance technical reserves (3) 94 103.6

 Other accounts receivable 95 1,071.2
 Trade receivables 96 338.6
 Other (miscellaneous assets) 97 732.6

Total liabilities and net worth 98 7,837.0

 Liabilities 99 3,379.0

 Loans 100 2,384.3
 Short term 101 637.8
 Bank loans n.e.c. 102 481.3
 Other loans and advances 103 156.5
 Long term (mortgages) 104 1,746.5

 Shares and other equity (foreign direct
 investment in the United States) 105 2.4

 Other accounts payable 106 992.4
 Trade payables 107 276.2
 Taxes payable 108 69.7
 Other (miscellaneous liabilities) 109 646.4

Net worth 110 4,458.0

 2004 2005

 Current account

Gross value added 1,839.9 1,963.1

Less: Consumption of fixed capital 166.6 195.3

Equals: Net value added 1,673.1 1,767.8
 Compensation of employees (paid) 469.8 504.9
 Wages and salaries 404.8 434.1
 Employers' social contributions 65.0 70.8
 Taxes on production and imports less subsidies 109.2 111.5
 Operating surplus, net 1,094.1 1,151.5

Net national income/balance of primary incomes,
 net 13.2 6.9
 Operating surplus, net 1,094.1 1,151.5
 Property income (interest received) 16.3 16.1
 Less: Uses of property income (paid) 1,097.1 1,160.7
 Interest 194.4 208.0
 Withdrawals from income of quasi-corporations
 (1) 902.7 952.6
 Reinvested earnings on foreign direct
 investment 0.1 0.1
 Rents on land and natural resources 0.0 0.0

Net national income/balance of primary incomes,
 net 13.2 6.9
 Less: Other current transfers (paid) 13.2 6.9

Equals: Disposable income, net 0.0 0.0

Equals: Net saving 0.0 0.0

 Capital account

Net saving 0.0 0.0

Capital formation, net 70.1 69.2
 Gross fixed capital formation 227.2 263.2
 Nonresidential 138.1 160.7
 Residential 89.1 102.5
 Less: Consumption of fixed capital 166.8 195.3
 Change in inventories 9.7 1.3

Net lending or net borrowing, capital account
 (21-22) -70.1 -69.2

 Financial account

Net lending or net borrowing (line 28) -70.1 -69.2

Net acquisition of financial assets 276.5 305.0

 Currency and deposits 78.0 85.8
 Currency and transferable deposits 28.1 30.7
 Time and savings deposits 49.8 55.1

 Securities other than shares 7.6 8.4
 Treasury securities 7.1 7.9
 Municipal securities 0.4 0.5

 Loans 4.1 4.6
 Short term (consumer credit) 0.0 0.0
 Long term (mortgages) 4.1 4.6

 Shares and other equity 9.0 8.8
 Money market mutual fund shares 8.5 9.3
 Equity in government-sponsored enterprises (2) 0.5 -0.5

 Insurance technical reserves (3) 7.2 8.9

 Other accounts receivable 170.6 188.5
 Trade receivables 53.9 59.6
 Other (miscellaneous assets) 116.6 128.9

Net incurrence of liabilities 346.6 374.2

 Loans 250.5 317.1
 Short term 15.7 55.6
 Bank loans n.e.c. 13.3 50.7
 Other loans and advances 2.4 4.9
 Long term (mortgages) 234.8 261.5

 Shares and other equity -30.1 -30.8
 Equity in noncorporate business -30.2 -30.9
 Foreign direct investment in the United States 0.1 0.1

 Other accounts payable 126.2 88.0
 Trade payables 28.8 30.4
 Taxes payable 7.5 8.3
 Other (miscellaneous liabilities) 89.8 49.3

Addendum:
 Net lending or net borrowing, financial account
 (30-47) -70.1 -69.2

 Other changes in volume account

Total other volume changes -70.2 -69.5

 Revaluation account

 Nonfinancial assets 468.5 674.2
 Real estate 466.0 684.7
 Residential 341.2 521.5
 Nonresidential 124.9 163.2
 Equipment and software -2.1 -14.2
 Residential -0.4 1.5
 Nonresidential -1.7 -15.7
 Inventories 4.5 3.8

Changes in net worth due to nominal holding gains
 or losses 468.5 674.2

 Changes in balance sheet account

Change in net worth (22+28+61+70) 398.2 604.7

 Balance sheet account (end of period)

Total assets 8,610.7 9,619.6

 Nonfinancial assets 6,525.9 7,229.8
 Real estate 5,893.8 6,563.0
 Residential (4) 4,390.4 4,902.2
 Nonresidential (5) 1,503.5 1,660.8
 Equipment and software 554.3 584.3
 Residential 41.9 45.4
 Nonresidential 512.5 538.9
 Inventories 77.8 82.6

 Financial assets 2,084.8 2,389.8

 Currency and deposits 580.7 666.5
 Currency and transferable deposits 217.8 248.5
 Time and savings deposits 362.8 417.9

 Securities other than shares 55.1 63.5
 Treasury securities 52.0 59.9
 Municipal securities 3.1 3.6

 Loans 30.2 34.7
 Short term (consumer credit) 0.0 0.0
 Long term (mortgages) 30.2 34.7

 Shares and other equity 66.3 75.2
 Money market mutual fund shares 61.5 70.9
 Equity in government-sponsored enterprises
 (2) 4.8 4.3

 Insurance technical reserves (3) 110.8 119.7

 Other accounts receivable 1,241.7 1,430.2
 Trade receivables 392.5 452.1
 Other (miscellaneous assets) 849.2 978.2

Total liabilities and net worth 8,610.7 9,619.6

 Liabilities 3,754.5 4,158.6

 Loans 2,633.5 2,949.6
 Short term 653.5 709.1
 Bank loans n.e.c. 494.6 545.3
 Other loans and advances 159.0 163.9
 Long term (mortgages) 1,980.0 2,240.4

 Shares and other equity (foreign direct
 investment in the United States) 2.5 2.6

 Other accounts payable 1,118.5 1,206.5
 Trade payables 305.0 335.4
 Taxes payable 77.3 85.6
 Other (miscellaneous liabilities) 736.2 785.5

Net worth 4,856.2 5,461.0

NOTES. Nonfinancial noncorporate business includes noncorporate farms
that are excluded from the nonfinancial noncorporate business sector
in the flow of funds accounts.

Estimates are based on the North American Industry Classification
System.

(1.) Consists of rental income of tenant-occupied housing and
proprietors' income. Quasi-corporations are unincorporated
enterprises that function as if they were corporations; they
primarily cover their operating costs through sales, and they
keep a complete set of financial records.

(2.) Government-sponsored enterprises (GSEs) consist of Federal Home
Loan Banks, Federal National Mortgage Association, Federal Home Loan
Mortgage Corporation, Federal Agricultural Mortgage Corporation,
Farm Credit System, the Financing Corporation, and the Resolution
Funding Corporation, and they included the Student Loan Marketing
Association until it was fully privatized in the fourth quarter
of 2004.

(3.) Net equity in reserves of property-casualty insurance
companies.

(4.) Farm houses are included in the household sector.

(5.) Excludes noncorporate farm land.

n.e.c. Not elsewhere classified

Table 3. Nonfinancial Corporate Business
[Billions of dollars]

 Line 2003

 Current account

Gross value added 1 5,558.4

Less: Consumption of fixed capital 2 657.5

Equals: Net value added 3 4,900.9
 Compensation of employees (paid) 4 3,703.2
 Wages and salaries 5 3,019.4
 Employers' social contributions 6 683.8
 Taxes on production and imports less subsidies 7 488.5
 Operating surplus, net 8 709.2

Net national income/balance of primary incomes,
 net 9 377.7
 Operating surplus, net 10 709.2
 Property income (received) 11 421.7
 Interest 12 240.8
 Distributed income of corporations
 (dividends) 13 55.8
 Reinvested earnings on foreign direct
 investment 14 125.1
 Less: Uses of property income (paid) 15 753.1
 Interest 16 379.1
 Distributed income of corporations
 (dividends) 17 348.5
 Reinvested earnings on foreign direct
 investment 18 11.2
 Rent 19 14.3

Net national income/balance of primary incomes,
 net 20 377.7
 Less: Current taxes on income, wealth, etc.
 (paid) 21 167.4
 Less: Other current transfers (paid) 22 64.4

Equals: Disposable income, net 23 146.0

Equals: Net saving 24 146.0

 Capital account

Net saving and capital transfers 25 146.1
 Net saving 26 146.0
 Capital transfers received (net) 27 0.2

Capital formation, net 28 98.0
 Gross fixed capital formation (acquisition of
 produced nonfinancial assets) 29 753.1
 Less: Consumption of fixed capital 30 657.5
 Acquisition of nonproduced nonfinancial assets 31 -10.8
 Inventory change including inventory valuation
 adjustment 32 13.2

Net lending or net borrowing, capital account
 (25-28) 33 48.1

 Financial account

Net lending or net borrowing, capital account
 (line 33) 34 48.1

Net acquisition of financial assets 35 83.4

 Currency and deposits 36 140.8
 Currency and transferable deposits 37 51.8
 Time and savings deposits 38 71.5
 Foreign deposits 39 17.6

 Securities other than shares 40 10.8
 Open market paper 41 10.9
 Treasury securities 42 1.4
 Agency- and GSE-backed securities (1) 43 -4.8
 Municipal securities 44 3.3

 Loans 45 -14.2
 Short term (security repurchases and
 consumer credit) 46 -16.4
 Long term (mortgages) 47 2.2

 Shares and other equity 48 109.5
 Money market fund shares 49 -38.5
 Mutual fund shares 50 11.3
 U.S. direct investment abroad 51 122.9
 Equity in government-sponsored enterprises
 (1) 52 0.1
 Investment in finance company subsidiaries 53 13.7

 Insurance technical reserves (2) 54 19.0

 Other accounts receivable 55 -182.7
 Trade receivables 56 -17.3
 Other (miscellaneous assets) 57 -165.4

Net incurrence of liabilities 58 14.8

 Securities other than shares 59 126.7
 Open market paper 60 -5.1
 Municipal securities 61 3.5
 Corporate bonds 62 158.3

 Loans 63 -36.7
 Short term 64 -84.3
 Bank loans n.e.c. 65 -85.9
 Other loans and advances 66 1.6
 Long term (mortgages) 67 47.6

 Shares and other equity 68 -18.1
 Corporate equities 69 -42.0
 Foreign direct investment in the United
 States 70 23.9

 Insurance technical reserves (contributions
 payable) 71 -0.2

 Other accounts payable 72 -56.9
 Trade payables 73 -54.6
 Taxes payable 74 -11.7
 Miscellaneous liabilities 75 9.4

Addendum:
 Net lending or net borrowing, financial
 account (35-58) 76 68.6

 Other changes in volume account

Total other volume changes 77 203.9
 Other volume changes 78 169.8

 Less: Statistical discrepancy (33-[35-58]) (3) 79 -20.5
 Less: Inventory valuation adjustment 80 -13.6

 Revaluation account

 Nonfinancial assets 81 307.3
 Real estate 82 283.7
 Equipment and software 83 21.2
 Inventories 84 2.4

 Financial assets 85 35.9
 Mutual fund shares 86 18.9
 Direct investment abroad 87 17.0

 Liabilities 88 2,247.2
 Corporate equity 89 2,246.3
 Foreign direct investment in the United
 States 90 1.0

Changes in net worth due to nominal holding
 gains or losses 91 -1,904.0

 Changes in balance sheet account

Change in net worth (28+33+77+91) (4) 92 -1,554.2

 Balance sheet account (end of period)

Total assets 93 20,137.5
 Nonfinancial assets (5) 94 10,018.8
 Real estate (6) 95 5,377.0
 Equipment and software 96 3,277.2
 Inventories 97 1,364.6

 Financial assets 98 10,118.7

 Currency and deposits 99 602.4
 Currency and transferable deposits 100 201.4
 Time and savings deposits 101 362.8
 Foreign deposits 102 38.1

 Securities other than shares 103 156.0
 Open market paper 104 75.7
 Treasury securities 105 32.8
 Agency- and GSE-backed securities (1) 106 12.1
 Municipal securities 107 35.4

 Loans 108 116.2
 Short term 109 64.5
 Security repurchases 110 6.0
 Consumer credit 111 58.5
 Long term (mortgages) 112 51.8

 Shares and other equity 113 2,276.9
 Money market fund shares 114 291.2
 Mutual fund shares 115 124.8
 U.S. direct investment abroad 116 1,723.9
 Equity in government-sponsored enterprises
 (1) 117 0.3
 Investment in finance company subsidiaries 118 138.6

 Insurance technical reserves (2) 119 243.4

 Other accounts receivable 120 6,721.8
 Trade receivables 121 1,702.4
 Other (miscellaneous assets) 122 5,019.4

Total liabilities and net worth 123 20,137.5

 Liabilities 124 19,940.4

 Securities other than shares 125 3,117.6
 Open market paper 126 84.8
 Municipal securities 127 164.2
 Corporate bonds 128 2,868.6

 Loans 129 1,764.4
 Short term 130 1,237.6
 Bank loans n.e.c. 131 567.5
 Other loans and advances 132 670.2
 Long term (mortgages) 133 526.7

 Shares and other equity 134 11,236.2
 Corporate equity 135 10,043.6
 Foreign direct investment in the United
 States 136 1,192.6

 Insurance technical reserves (contributions
 payable) 137 49.8

 Other accounts payable 138 3,772.4
 Trade payables. 139 1,405.6
 Taxes payable 140 81.2
 Miscellaneous liabilities 141 2,285.6

Net worth 142 197.1

 2004 2005

 Current account

Gross value added 5,932.9 6,369.7

Less: Consumption of fixed capital 686.2 739.7

Equals: Net value added 5,246.7 5,630.1
 Compensation of employees (paid) 3,873.4 4,099.7
 Wages and salaries 3,158.4 3,335.1
 Employers' social contributions 714.9 764.6
 Taxes on production and imports less subsidies 522.9 558.1
 Operating surplus, net 850.4 972.2

Net national income/balance of primary incomes,
 net 460.1 560.6
 Operating surplus, net 850.4 972.2
 Property income (received) 473.0 529.6
 Interest 258.2 283.5
 Distributed income of corporations
 (dividends) 60.1 231.1
 Reinvested earnings on foreign direct
 investment 154.8 15.0
 Less: Uses of property income (paid) 863.4 941.2
 Interest 380.6 423.5
 Distributed income of corporations
 (dividends) 427.0 459.6
 Reinvested earnings on foreign direct
 investment 40.5 41.6
 Rent 15.3 16.6

Net national income/balance of primary incomes,
 net 460.1 560.6
 Less: Current taxes on income, wealth, etc.
 (paid) 224.3 302.5
 Less: Other current transfers (paid) 60.0 51.4

Equals: Disposable income, net 175.8 206.7

Equals: Net saving 175.8 206.7

 Capital account

Net saving and capital transfers 175.8 206.7
 Net saving 175.8 206.7
 Capital transfers received (net) 0.0 0.0

Capital formation, net 146.8 153.1
 Gross fixed capital formation (acquisition of
 produced nonfinancial assets) 796.5 883.7
 Less: Consumption of fixed capital 686.2 739.7
 Acquisition of nonproduced nonfinancial assets -11.0 -10.8
 Inventory change including inventory valuation
 adjustment 47.6 20.0

Net lending or net borrowing, capital account
 (25-28) 28.9 53.5

 Financial account

Net lending or net borrowing, capital account
 (line 33) 28.9 53.5

Net acquisition of financial assets 786.1 395.5

 Currency and deposits 39.2 28.6
 Currency and transferable deposits -34.0 -37.1
 Time and savings deposits 57.7 45.6
 Foreign deposits 15.6 20.1

 Securities other than shares 19.3 14.7
 Open market paper 19.3 11.7
 Treasury securities 0.2 3.9
 Agency- and GSE-backed securities (1) 0.1 1.4
 Municipal securities -0.4 -2.4

 Loans 16.6 24.7
 Short term (security repurchases and
 consumer credit) 0.5 8.6
 Long term (mortgages) 16.1 16.1

 Shares and other equity 290.9 -18.0
 Money market fund shares 27.7 35.8
 Mutual fund shares 2.0 7.4
 U.S. direct investment abroad 219.8 -8.5
 Equity in government-sponsored enterprises
 (1) 0.0 0.0
 Investment in finance company subsidiaries 41.3 -52.7

 Insurance technical reserves (2) 19.6 21.4

 Other accounts receivable 400.4 324.2
 Trade receivables 125.4 154.7
 Other (miscellaneous assets) 275.0 169.4

Net incurrence of liabilities 608.6 324.1

 Securities other than shares 99.6 59.4
 Open market paper 16.8 -7.9
 Municipal securities 5.1 7.4
 Corporate bonds 77.7 59.9

 Loans 79.9 221.9
 Short term 32.3 134.5
 Bank loans n.e.c. 14.9 62.5
 Other loans and advances 17.4 72.0
 Long term (mortgages) 47.6 87.4

 Shares and other equity -98.0 -320.5
 Corporate equities -126.6 -363.4
 Foreign direct investment in the United
 States 28.6 42.9

 Insurance technical reserves (contributions
 payable) -0.1 -1.9

 Other accounts payable 530.4 365.2
 Trade payables 101.8 148.2
 Taxes payable 6.8 5.1
 Miscellaneous liabilities 421.8 212.0

Addendum:
 Net lending or net borrowing, financial
 account (35-58) 177.3 71.4

 Other changes in volume account

Total other volume changes 450.7 584.8
 Other volume changes 262.5 534.4

 Less: Statistical discrepancy (33-[35-58]) (3) -148.4 -17.9
 Less: Inventory valuation adjustment -39.8 -32.6

 Revaluation account

 Nonfinancial assets 579.3 744.3
 Real estate 494.9 679.6
 Equipment and software 54.4 43.4
 Inventories 30.0 21.3

 Financial assets 67.5 67.7
 Mutual fund shares 13.0 9.1
 Direct investment abroad 54.5 58.7

 Liabilities 907.0 461.2
 Corporate equity 890.0 432.6
 Foreign direct investment in the United
 States 17.0 28.6

Changes in net worth due to nominal holding
 gains or losses -260.2 350.8

 Changes in balance sheet account

Change in net worth (28+33+77+91) (4) 366.2 1,142.3

 Balance sheet account (end of period)

Total assets 21,748.9 23,122.2
 Nonfinancial assets (5) 10,804.5 11,762.6
 Real estate (6) 5,920.9 6,656.9
 Equipment and software 3,385.8 3,515.2
 Inventories 1,497.8 1,590.5

 Financial assets 10,944.4 11,359.6

 Currency and deposits 641.6 670.2
 Currency and transferable deposits 167.4 130.3
 Time and savings deposits 420.5 466.0
 Foreign deposits 53.7 73.8

 Securities other than shares 175.3 190.0
 Open market paper 95.0 106.8
 Treasury securities 33.0 36.9
 Agency- and GSE-backed securities (1) 12.2 13.7
 Municipal securities 35.0 32.6

 Loans 132.8 157.6
 Short term 64.9 73.5
 Security repurchases 6.4 14.9
 Consumer credit 58.5 58.6
 Long term (mortgages) 67.9 84.0

 Shares and other equity 2,637.2 2,716.0
 Money market fund shares 319.0 354.8
 Mutual fund shares 139.8 156.3
 U.S. direct investment abroad 1,998.2 2,048.4
 Equity in government-sponsored enterprises
 (1) 0.4 0.4
 Investment in finance company subsidiaries 179.9 156.1

 Insurance technical reserves (2) 263.0 284.4

 Other accounts receivable 7,094.4 7,341.5
 Trade receivables 1,827.8 1,982.5
 Other (miscellaneous assets) 5,266.6 5,359.0

Total liabilities and net worth 21,748.9 23,122.2

 Liabilities 21,185.5 21,416.5

 Securities other than shares 3,217.3 3,276.7
 Open market paper 101.6 93.8
 Municipal securities 169.4 176.7
 Corporate bonds 2,946.3 3,006.2

 Loans 1,844.3 2,066.2
 Short term 1,270.0 1,404.4
 Bank loans n.e.c. 582.4 644.9
 Other loans and advances 687.6 759.5
 Long term (mortgages) 574.3 661.7

 Shares and other equity 12,045.2 12,185.9
 Corporate equity 10,807.0 10,876.3
 Foreign direct investment in the United
 States 1,238.1 1,309.6

 Insurance technical reserves (contributions
 payable) 46.6 44.8

 Other accounts payable 4,032.2 3,843.1
 Trade payables. 1,507.3 1,655.5
 Taxes payable 88.0 93.1
 Miscellaneous liabilities 2,436.8 2,094.5

Net worth 563.3 1,705.7

NOTES. Nonfinancial corporate business includes corporate farms that
are excluded from the nonfinancial corporate business sector in the
flow of funds accounts.

Estimates are based on the North American Industry Classification
System.

(1.) Government-sponsored enterprises (GSEs) consist of Federal Home
Loan Banks, Federal National Mortgage Association, Federal Horne
Loan Mortgage Corporation, Federal Agricultural Mortgage Corporation,
Farm Credit System, the Financing Corporation, and the Resolution
Funding Corporation, and they included the Student Loan Marketing
Association until it was fully privatized in the fourth quarter
of 2004.

(2.) Net equity in reserves of property-casualty insurance companies.

(3.) The statistical discrepancy is the difference between net
lending or net borrowing derived in the capital account and the same
concept derived in the financial account. The discrepancy reflects
differences in source data, timing of recorded flows, and other
statistical differences between the capital and financial accounts.

(4.) Includes changes in the market value of shares and other equity
that are excluded from the related measures for the nonfinancial
corporate business sector in the flow of funds accounts.

(5.) Excludes nonproduced nonfinancial assets.

(6.) Excludes corporate farm land.

n.e.c. Not elsewhere classified

Table 4. Financial Business
[Billions of dollars]

 Line 2003

 Current account

Gross value added 1 970.5

Less: Consumption of fixed capital 2 108.3

Equals: Net value added 3 862.2
 Compensation of employees (paid) 4 472.3
 Wages and salaries 5 392.8
 Employers' social contributions 6 79.5
 Taxes on production and imports less subsidies 7 46.6
 Operating surplus, net 8 343.4

Net national income/balance of primary incomes,
 net 9 254.6
 Operating surplus, net 10 343.4
 Property income (received) 11 1,124.8
 Interest 12 1,024.4
 Distributed income of corporations
 (dividends) 13 77.3
 Reinvested earnings on foreign direct
 investment 14 23.1
 Less: Uses of property income (paid) 15 1,213.6
 Interest 16 979.9
 Distributed income of corporations 17 230.2
 Dividends 18 177.4
 Withdrawals from income of
 quasi-corporations (1) 19 52.8
 Reinvested earnings on foreign direct
 investment 20 3.5
 Rents on land and natural resources 21 0.0

Net national income/balance of primary incomes,
 net 22 254.6
 Less: Current taxes on income, wealth, etc.
 (paid) 23 75.9
 Less: Other current transfers (paid) 24 -0.5

Equals: Disposable income, net 25 179.1

Equals: Net saving 26 179.1

 Capital account

Net saving 27 179.1

Capital formation, net 28 -10.1
 Gross fixed capital formation (nonresidential) 29 98.2
 Less: Consumption of fixed capital 30 108.3

Net lending or net borrowing, capital account
 (27-28) 31 189.3

 Financial account

Net lending or net borrowing (line 31) 32 189.3

Net acquisition of financial assets 33 2,664.4

 Monetary gold and SDRs 34 0.0

 Currency and deposits 35 -44.6

 Securities other than shares 36 1,010.7

 Loans 37 1,089.1
 Short term 38 101.5
 Long term (mortgages) 39 987.6

 Shares and other equity 40 263.5
 Corporate equities 41 123.7
 Mutual fund shares 42 42.1
 Money market mutual fund shares 43 -54.7
 Equity in government-sponsored enterprises
 (2) 44 2.5
 U.S. direct investment abroad 45 27.0
 Stack in Federal Reserve banks 46 0.5
 Investment in subsidiaries 47 122.4

 Insurance technical reserves 48 -17.3

 Other accounts receivable 49 363.2

Net incurrence of liabilities 50 2,534.6

 Currency and deposits 51 426.3

 Securities other than shares 52 977.0

 Loans 53 357.7
 Short term 54 349.4
 Long term (mortgages) 55 8.3

 Shares and other equity 56 319.4
 Money market mutual fund shares 57 -207.5
 Corporate equity issues 58 62.7
 Mutual fund shares 59 288.6
 Equity in government-sponsored enterprises
 (2) 60 3.2
 Foreign direct investment in the United
 States 61 40.2
 Equity in noncorporate business 62 -4.5
 Investment by parent 63 136.2
 Stock in Federal Reserve banks 64 0.5

 Insurance technical reserves 65 308.4

 Other accounts payable 66 145.7

Addendum:
 Net lending or net borrowing, financial
 account (33-50) 67 129.8

 Other changes in volume account

Total other volume changes 68 -162.0
 Other volume changes 69 -102.6
 Less: Statistical discrepancy (31-[33-50]) (3) 70 59.5

 Revaluation account

 Nonfinancial assets 71 63.7
 Structures 72 30.5
 Equipment and software 73 33.2

 Financial assets 74 2,311.1
 Corporate equities 75 2,008.2
 Mutual fund shares 76 277.0
 U.S. direct investment abroad 77 25.9

 Liabilities 78 2,894.5
 Corporate equity issues 79 746.3
 Mutual fund shares 80 727.2
 Foreign direct investment in the United
 States 81 12.3
 Equity in noncorporate business 82 4.3
 Pension fund reserves 83 1,404.5

Changes in net worth due to nominal holding
 gains or losses 84 -519.7

 Changes in balance sheet account

Change in net worth (28+31+68+84). 85 -502.6

 Balance sheet account (end of period)

Total assets 86 45,473.0

 Nonfinancial assets (4) 87 1,886.7
 Structures 88 1,181.9
 Equipment and software 89 704.8

 Financial assets 90 43,586.3

 Monetary gold and SORs 91 13.2

 Currency and deposits 92 884.9

 Securities other than shares 93 13,532.5
 Open market paper 94 953.5
 Treasury securities 95 1,612.2
 Agency- and GSE-backed securities (2) 96 4,703.2
 Municipal securities 97 1,130.8
 Corporate and foreign bonds 98 4,317.8
 Nonmarketable government securities 99 815.0

 Loans 100 14,322.6
 Short term 101 5,381.0
 Long term (mortgages) 102 8,941.6

 Shares and other equity 103 12,187.3
 Corporate equities 104 8,081.2
 Mutual fund shares 105 1,418.0
 Money market fund shares 106 649.5
 Equity in government-sponsored enterprises
 (2) 107 37.7
 U.S. direct investment abroad 108 335.9
 Stock in Federal Reserve banks 109 8.8
 Investment in subsidiaries 110 1,656.1

 Insurance technical reserves 111 387.7

 Other accounts receivable 112 2,258.1

Total liabilities and net worth 113 45,473.0

 Liabilities 114 46,210.9

 Currency and deposits 115 6,880.2

 Securities other than shares 116 10,311.5
 Agency- and GSE-backed securities (2) 117 6,083.3
 Corporate bonds 118 3,147.7
 Commercial paper 119 1,080.5

 Loans 120 2,995.8
 Short term 121 2,893.7
 Long term (mortgages) 122 102.1

 Shares and other equity 123 12,398.6
 Money market fund shares 124 2,016.4
 Corporate equity issues 125 3,495.5
 Mutual fund shares 126 4,654.2
 Equity in government-sponsored enterprises
 (2) 127 42.3
 Foreign direct investment in the United
 States 128 382.0
 Equity in noncorporate business 129 4.8
 Investment by parent 130 1,794.7
 Stock in Federal Reserve banks 131 8.8

 Insurance technical reserves 132 11,760.9

 Other accounts payable 133 1,863.9

Net worth 134 -738.0

 2004 2005

 Current account

Gross value added 1,010.9 1,053.9

Less: Consumption of fixed capital 116.5 124.2

Equals: Net value added 894.4 929.7
 Compensation of employees (paid) 503.5 538.0
 Wages and salaries 419.2 447.1
 Employers' social contributions 84.3 90.9
 Taxes on production and imports less subsidies 50.6 53.3
 Operating surplus, net 340.3 338.5

Net national income/balance of primary incomes,
 net 254.5 286.2
 Operating surplus, net 340.3 338.5
 Property income (received) 1,348.3 1,648.2
 Interest 1,211.0 1,468.2
 Distributed income of corporations
 (dividends) 106.7 177.0
 Reinvested earnings on foreign direct
 investment 30.6 3.1
 Less: Uses of property income (paid) 1,434.1 1,700.4
 Interest 1,132.3 1,340.6
 Distributed income of corporations 286.3 342.2
 Dividends 232.5 287.2
 Withdrawals from income of
 quasi-corporations (1) 53.8 55.0
 Reinvested earnings on foreign direct
 investment 15.5 17.6
 Rents on land and natural resources 0.0 0.0

Net national income/balance of primary incomes,
 net 254.5 286.2
 Less: Current taxes on income, wealth, etc.
 (paid) 75.8 96.8
 Less: Other current transfers (paid) 11.5 41.6

Equals: Disposable income, net 167.2 147.8

Equals: Net saving 167.2 147.8

 Capital account

Net saving 167.2 147.8

Capital formation, net 19.5 -0.4
 Gross fixed capital formation (nonresidential) 136.0 123.8
 Less: Consumption of fixed capital 116.5 124.2

Net lending or net borrowing, capital account
 (27-28) 147.7 148.2

 Financial account

Net lending or net borrowing (line 31) 147.7 148.2

Net acquisition of financial assets 2,700.4 3,203.2

 Monetary gold and SDRs 0.0 0.0

 Currency and deposits 42.5 18.7

 Securities other than shares 454.8 534.8

 Loans 1,563.5 1,896.6
 Short term 315.9 470.2
 Long term (mortgages) 1,247.6 1,426.3

 Shares and other equity 554.7 515.6
 Corporate equities 268.6 217.0
 Mutual fund shares 48.7 -13.0
 Money market mutual fund shares -119.7 25.4
 Equity in government-sponsored enterprises
 (2) 2.4 2.0
 U.S. direct investment abroad 24.3 17.5
 Stack in Federal Reserve banks 3.1 1.6
 Investment in subsidiaries 327.4 265.0

 Insurance technical reserves -8.9 -10.1

 Other accounts receivable 123.8 247.7

Net incurrence of liabilities 2,835.9 3,068.2

 Currency and deposits 636.3 596.6

 Securities other than shares 746.4 970.2

 Loans 302.1 445.5
 Short term 275.9 432.4
 Long term (mortgages) 26.3 13.1

 Shares and other equity 745.9 734.4
 Money market mutual fund shares -136.5 127.0
 Corporate equity issues 108.3 67.9
 Mutual fund shares 298.2 260.2
 Equity in government-sponsored enterprises
 (2) 2.9 1.51
 Foreign direct investment in the United
 States 104.5 66.8
 Equity in noncorporate business -3.3 -2.8
 Investment by parent 368.7 212.2
 Stock in Federal Reserve banks 3.1 1.6

 Insurance technical reserves 295.4 220.1

 Other accounts payable 109.8 101.5

Addendum:
 Net lending or net borrowing, financial
 account (33-50) -135.5 135.0

 Other changes in volume account

Total other volume changes -261.5 44.7
 Other volume changes 21.7 57.9
 Less: Statistical discrepancy (31-[33-50]) (3) 283.2 13.2

 Revaluation account

 Nonfinancial assets 153.3 154.2
 Structures 120.2 124.3
 Equipment and software 33.1 29.9

 Financial assets 1,344.3 795.7
 Corporate equities 1,111.8 711.4
 Mutual fund shares 191.8 97.3
 U.S. direct investment abroad 40.8 -13.0

 Liabilities 1,627.6 976.1
 Corporate equity issues 418.1 224.5
 Mutual fund shares 483.8 352.4
 Foreign direct investment in the United
 States 0.0 8.8
 Equity in noncorporate business 2.9 3.1
 Pension fund reserves 722.7 387.2

Changes in net worth due to nominal holding
 gains or losses -130.0 -26.2

 Changes in balance sheet account

Change in net worth (28+31+68+84). -224.3 166.3

 Balance sheet account (end of period)

Total assets 49,642.4 53,694.5

 Nonfinancial assets (4) 2,040.0 2,194.2
 Structures 1,302.1 1,426.4
 Equipment and software 737.9 767.8

 Financial assets 47,602.4 51,500.3

 Monetary gold and SORs 13.2 13.2

 Currency and deposits 933.1 949.1

 Securities other than shares 14,007.3 14,522.8
 Open market paper 985.1 1,196.6
 Treasury securities 1,532.1 1,584.0
 Agency- and GSE-backed securities (2) 4,629.5 4,285.3
 Municipal securities 1,221.2 1,338.6
 Corporate and foreign bonds 4,783.5 5,235.4
 Nonmarketable government securities 855.9 882.9

 Loans 15,900.9 17,797.5
 Short term 5,697.0 6,167.2
 Long term (mortgages) 10,204.0 11,630.3

 Shares and other equity 14,086.3 15,397.5
 Corporate equities 9,461.6 10,390.0
 Mutual fund shares 1,658.4 1,742.7
 Money market fund shares 529.8 555.2
 Equity in government-sponsored enterprises
 (2) 40.1 42.0
 U.S. direct investment abroad 401.0 405.5
 Stock in Federal Reserve banks 11.9 13.5
 Investment in subsidiaries 1,983.5 2,248.5

 Insurance technical reserves 397.6 405.5

 Other accounts receivable 2,264.0 2,414.6

Total liabilities and net worth 49,642.4 53,694.5

 Liabilities 50,604.6 54,490.4

 Currency and deposits 7,541.8 8,139.8

 Securities other than shares 11,072.7 11,988.4
 Agency- and GSE-backed securities (2) 6,201.3 6,251.9
 Corporate bonds 3,735.7 4,364.7
 Commercial paper 1,135.7 1,371.8

 Loans 3,297.9 3,743.4
 Short term 3,169.5 3,601.9
 Long term (mortgages) 128.4 141.4

 Shares and other equity 14,049.3 15,401.5
 Money market fund shares 1,879.8 2,006.9
 Corporate equity issues 4,021.9 4,314.3
 Mutual fund shares 5,436.3 6,048.9
 Equity in government-sponsored enterprises
 (2) 45.2 46.7
 Foreign direct investment in the United
 States 486.4 562.1
 Equity in noncorporate business 4.4 4.6
 Investment by parent 2,163.4 2,404.6
 Stock in Federal Reserve banks 11.9 13.5

 Insurance technical reserves 12,841.9 13,471.5

 Other accounts payable 1,801.0 1,745.8

Net worth -962.2 -795.9

NOTES. Financial business includes depository institutions, insurance
companies and pension funds, monetary authority, and other financial
institutions.

Estimates are based on the North American Industry Classification
System.

(1.) Consists of rental income of tenant-occupied housing and
proprietors' income. Quasi-corporations are unincorporated
enterprises that function as if they were corporations; they
primarily cover their operating costs through sales, and they
keep a complete set of financial records.

(2.) Government-sponsored enterprises (GSEs) consist of Federal Home
Loan Banks, Federal National Mortgage Association, Federal Home Loan
Mortgage Corporation, Federal Agricultural Mortgage Corporation, Farm
Credit System, the Financing Corporation, and the Resolution Funding
Corporation and they included the Student Loan Marketing Association
until it was fully privatized in the fourth quarter of 2004.

(3.) The statistical discrepancy is the difference between net
lending or net borrowing derived in the capital account and the same
concept derived in the financial account. The discrepancy reflects
differences in source data, timing of recorded flows, and other
statistical differences between the capital and financial accounts.

(4.) Excludes land.

SDRs Special Drawing Rights

Table 5. Federal Government
[Billions of dollars]

 Line 2003

 Current account

Gross value added 1 448.6

Less: Consumption of fixed capital 2 90.4

Equals: Net value added 3 358.2
 Compensation of employees (paid) 4 355.8
 Wages and salaries 5 236.0
 Employers' social contributions 6 119.8
 Operating surplus, net 7 2.3

Net national income/balance of primary incomes,
 net 8 -145.7
 Operating surplus, net 9 2.3
 Taxes on production and imports, receivable 10 89.7
 Subsidies (paid) 11 -47.8
 Property income (received) 12 22.9
 Interest 13 16.4
 Rents on land and natural resources 14 6.5
 Less: Uses of property income (interest paid) 15 212.9

Net national income/balance of primary incomes,
 net 16 -145.7
 Plus: Current taxes on income, wealth, etc.
 (received) 17 981.1
 Plus: Social benefits (received) 18 758.9
 Less: Social contributions (paid) 19 966.5
 Plus: Other current transfers (received) 20 25.0
 Less: Other current transfers (paid) 21 362.2

Equals: Disposable income, net 22 290.6
 Less: Final consumption expenditures 23 662.7

Equals: Net saving 24 -372.1

 Capital account

Net saving and capital transfers 25 -412.5
 Net saving 26 -372.1
 Capital transfers received (net) 27 -40.4

Capital formation, net 28 3.1
 Gross fixed capital formation (acquisition of
 produced nonfinancial assets) 29 93.7
 Less: Consumption of fixed capital 30 90.4
 Acquisition of nonproduced nonfinancial assets 31 -0.2

Net lending or net borrowing, capital account
 (lines 25-28) 32 -415.6

 Financial account

Net lending or net borrowing (line 32) 33 -415.6

Net acquisition of financial assets 34 33.9

 Monetary gold and SDRs 35 -0.6

 Currency and deposits 36 -17.0
 Official foreign exchange 37 0.3
 Net IMF position 38 -1.5
 Currency and transferable deposits 39 9.2
 Time and savings deposits 40 -25.2
 Nonofficial foreign currencies 41 0.2

 Loans 42 -2.7
 Short term 43 -0.2
 Consumer credit 44 1.3
 Other loans and advances 45 -1.5
 Long term (mortgages) 46 -2.5

 Shares and other equity 47 1.4
 Equity in international organizations 48 1.4
 Equity in government-sponsored enterprises
 (1) 49 0.0

 Other accounts receivable 50 52.7
 Trade receivables 51 19.1
 Taxes receivable 52 33.9
 Other (miscellaneous assets) 53 -0.2

Net incurrence of liabilities. 54 501.0

 Monetary gold and SDRs (SDR certificates). 55 0.0

 Currency and deposits (Treasury currency) 56 0.6

 Securities other than shares 57 396.0
 Treasury securities including savings bonds 58 398.4
 Federal agency securities 59 -2.4

 Insurance technical reserves 60 34.4
 Insurance reserves 61 1.1
 Nonmarketable securities held by pension
 plans 62 24.7
 Uniformed Services Retiree Health Care Fund 63 8.6

 Other accounts payable 64 70.0
 Trade payables 65 72.6
 Other (miscellaneous liabilities) 66 -2.6

Addendum:
 Net lending or net borrowing, financial
 account (34-54) 67 -467.1

 Other changes in volume account

Total other volume changes 68 -50.2
 Other volume changes 69 1.3
 Less: Statistical discrepancy (32-[34-54]) (2) 70 51.5

 Revaluation account

 Nonfinancial assets 71 26.8
 Structures 72 24.0
 Equipment and software 73 2.8

 Financial assets 74 3.1
 Currency and checkable deposits 75 -2.7
 Monetary gold, SDRs, and official foreign
 exchange 76 5.8

Changes in net worth due to nominal holding
 gains or losses 77 29.9

 Changes In balance sheet account

Change in net worth (28+32+68+77) 78 -432.8

 Balance sheet account (end of period)

Total assets 79 2,151.8

 Nonfinancial assets (30 80 1,498.9
 Structures 81 985.3
 Equipment and software 82 513.6

 Financial assets 83 653.0

 Monetary gold and SDRs 84 12.6

 Currency and deposits 85 101.8
 Official foreign exchange 86 19.9
 Net IMF position 87 22.6
 Currency and transferable deposits 88 54.1
 Time and savings deposits 89 2.4
 Nonofficial foreign currencies 90 2.8

 Loans 91 285.6
 Short term 92 211.7
 Consumer credit 93 94.1
 Other loans and advances 94 117.7
 Long term (mortgages) 95 73.8

 Shares and other equity 96 40.0
 Equity in international organizations 97 40.0
 Equity in government-sponsored enterprises
 (1) 98 0.0

 Other accounts receivable 99 213.0
 Trade receivables 100 51.3
 Taxes receivable 101 102.8
 Other (miscellaneous assets) 102 58.9

Total liabilities and net worth 103 2,151.8

 Liabilities 104 5,084.4

 Monetary gold and SDRs (SDR certificates) 105 2.2

 Currency and deposits (Treasury currency) 106 26.0

 Securities other than shares 107 4,033.1
 Treasury securities including savings
 bonds 108 4,008.2
 Federal agency securities 109 24.9

 Insurance technical reserves 110 865.9
 Insurance reserves 111 40.5
 Nonmarketable securities held by pension
 plans 112 815.0
 Uniformed Services Retiree Health Care
 Fund 113 10.5

 Other accounts payable 114 157.2
 Trade payables 115 151.4
 Other (miscellaneous liabilities) 116 5.8

Net worth 117 -2,932.6

 2004 2005

 Current account

Gross value added 478.4 498.8

Less: Consumption of fixed capital 94.1 99.0

Equals: Net value added 384.3 399.8
 Compensation of employees (paid) 385.5 404.7
 Wages and salaries 250.0 261.1
 Employers' social contributions 135.5 143.6
 Operating surplus, net -1.2 -4.9

Net national income/balance of primary incomes,
 net -149.6 -191.5
 Operating surplus, net -1.2 -4.9
 Taxes on production and imports, receivable 94.6 101.1
 Subsidies (paid) -44.3 -56.9
 Property income (received) 22.1 22.9
 Interest 15.5 15.9
 Rents on land and natural resources 6.6 7.1
 Less: Uses of property income (interest paid) 220.9 253.8

Net national income/balance of primary incomes,
 net -149.6 -191.5
 Plus: Current taxes on income, wealth, etc.
 (received) 1,055.6 1,265.1
 Plus: Social benefits (received) 802.2 855.3
 Less: Social contributions (paid) 1,018.4 1,081.7
 Plus: Other current transfers (received) 27.7 7.1
 Less: Other current transfers (paid) 374.9 395.0

Equals: Disposable income, net 342.5 459.4
 Less: Final consumption expenditures 724.5 768.6

Equals: Net saving -382.0 -309.2

 Capital account

Net saving and capital transfers -420.4 -351.2
 Net saving -382.0 -309.2
 Capital transfers received (net) -38.4 -42.0

Capital formation, net 7.4 10.1
 Gross fixed capital formation (acquisition of
 produced nonfinancial assets) 101.4 109.8
 Less: Consumption of fixed capital 94.1 99.0
 Acquisition of nonproduced nonfinancial assets 0.0 -0.6

Net lending or net borrowing, capital account
 (lines 25-28) -427.8 -361.3

 Financial account

Net lending or net borrowing (line 32) -427.8 -361.3

Net acquisition of financial assets -2.9 15.0

 Monetary gold and SDRs 0.4 4.5

 Currency and deposits -34.6 -0.9
 Official foreign exchange 0.3 0.3
 Net IMF position -3.8 -10.2
 Currency and transferable deposits -31.0 12.2
 Time and savings deposits 0.0 -1.0
 Nonofficial foreign currencies 0.0 -2.2

 Loans 3.3 -2.7
 Short term 1.7 -5.1
 Consumer credit 4.3 3.8
 Other loans and advances -2.6 -8.8
 Long term (mortgages) 1.6 2.4

 Shares and other equity 2.0 1.3
 Equity in international organizations 2.0 1.3
 Equity in government-sponsored enterprises
 (1) 0.0 0.0

 Other accounts receivable 26.0 21.8
 Trade receivables 10.5 9.1
 Taxes receivable 16.9 13.2
 Other (miscellaneous assets) -1.4 -0.5

Net incurrence of liabilities. 428.8 363.2

 Monetary gold and SDRs (SDR certificates). 0.0 0.0

 Currency and deposits (Treasury currency) 0.7 0.8

 Securities other than shares 361.9 306.9
 Treasury securities including savings bonds 362.5 307.3
 Federal agency securities -0.6 -0.4

 Insurance technical reserves 50.4 38.0
 Insurance reserves 1.1 1.1
 Nonmarketable securities held by pension
 plans 40.9 40.0
 Uniformed Services Retiree Health Care Fund 8.4 -3.1

 Other accounts payable 15.8 17.5
 Trade payables 14.8 12.4
 Other (miscellaneous liabilities) 1.0 5.0

Addendum:
 Net lending or net borrowing, financial
 account (34-54) -431.7 -348.2

 Other changes in volume account

Total other volume changes -39.8 9.0
 Other volume changes -35.9 -4.1
 Less: Statistical discrepancy (32-[34-54]) (2) 3.9 -13.1

 Revaluation account

 Nonfinancial assets 87.3 78.0
 Structures 61.3 74.8
 Equipment and software 26.0 3.2

 Financial assets 1.3 -2.1
 Currency and checkable deposits -1.2 2.7
 Monetary gold, SDRs, and official foreign
 exchange 2.5 -4.9

Changes in net worth due to nominal holding
 gains or losses 88.6 75.9

 Changes In balance sheet account

Change in net worth (28+32+68+77) -371.7 -266.2

 Balance sheet account (end of period)

Total assets 2,207.7 2,286.4

 Nonfinancial assets (30 1,593.2 1,681.0
 Structures 1,042.7 1,112.3
 Equipment and software 550.5 568.7

 Financial assets 614.6 605.4

 Monetary gold and SDRs 13.6 8.2

 Currency and deposits 68.0 65.9
 Official foreign exchange 21.4 18.9
 Net IMF position 19.6 8.1
 Currency and transferable deposits 21.9 36.8
 Time and savings deposits 2.4 1.4
 Nonofficial foreign currencies 2.8 0.6

 Loans 288.8 286.1
 Short term 213.4 208.3
 Consumer credit 98.4 102.1
 Other loans and advances 115.0 106.2
 Long term (mortgages) 75.4 77.8

 Shares and other equity 42.0 43.2
 Equity in international organizations 42.0 43.2
 Equity in government-sponsored enterprises
 (1) 0.0 0.0

 Other accounts receivable 202.2 201.9
 Trade receivables 61.8 70.9
 Taxes receivable 82.9 74.0
 Other (miscellaneous assets) 57.5 57.1

Total liabilities and net worth 2,207.7 2,286.4

 Liabilities 5,512.0 5,856.9

 Monetary gold and SDRs (SDR certificates) 2.2 2.2

 Currency and deposits (Treasury currency) 26.7 27.5

 Securities other than shares 4,395.0 4,701.9
 Treasury securities including savings
 bonds 4,370.7 4,678.0
 Federal agency securities 24.3 23.8

 Insurance technical reserves 916.3 941.3
 Insurance reserves 41.6 42.7
 Nonmarketable securities held by pension
 plans 855.9 882.9
 Uniformed Services Retiree Health Care
 Fund 18.8 15.7

 Other accounts payable 171.8 184.0
 Trade payables 166.2 178.6
 Other (miscellaneous liabilities) 5.6 5.4

Net worth -3,304.2 -3,570.5

NOTE. The Federal government accounts exclude Federal employee
retirement funds.

(1.) Government-sponsored enterprises (GSEs) consist of Federal Home
Loan Banks, Federal National Mortgage Association, Federal Home Loan
Mortgage Corporation, Federal Agricultural Mortgage Corporation,
Farm Credit System, the Financing Corporation, and the Resolution
Funding Corporation, and they included the Student Loan Marketing
Association until it was fully privatized in the fourth quarter
of 2004.

(2.) The statistical discrepancy is the difference between net
lending or net borrowing derived in the capital account and the same
concept derived in the financial account. The discrepancy reflects
differences in source data, timing of recorded flows, and other
statistical differences between the capital and financial accounts.

(3.) Excludes land and nonproduced nonfinancial assets.

IMF International Monetary Fund

SDRs Special Drawing Rights

Table 6 State and Local Governments
[Billions of dollars]

 Line 2003 2004 2005

Current account

Gross value added 1 983.7 1,027.2 1,079.7
Less: Consumption of
 fixed capital 2 127.8 136.7 153.2
Equals: Net value added 3 855.9 890.5 926.5
 Compensation of
 employees (paid) 4 856.5 894.3 936.9
 Wages and salaries 5 668.4 691.8 716.6
 Employers' social
 contributions 6 188.2 202.5 220.3
 Operating surplus, net 7 -0.6 -3.8 -10.5

Net national income/
balance of primary
incomes, net 8 702.1 746.7 791.6
 Operating surplus, net 9 -0.6 -3.8 -10.5
 Taxes on production and
 imports, receivable 10 717.5 769.4 821.2
 Subsidies (paid) 11 -0.1 -0.4 -0.4
 Property income (received) 12 72.9 73.3 75.3
 Interest 13 62.9 62.1 63.4
 Distributed income of
 corporations (dividends) 14 2.2 2.4 24.0
 Rents on land and
 natural resources 15 7.9 8.7 95.0
 Less: Uses of property
 income (interest paid) 16 87.7 91.8 94.2

Net national income/
 balance of primary
 incomes, net 17 702.1 746.7 791.6
 Plus: Current taxes on
 income, wealth,
 etc (received) 18 261.9 291.5 333.2
 Plus: Social benefits
 (received) 19 19.8 24.2 25.3
 Less: Social
 contributions (paid) 20 353.0 382.9 402.3
 Plus: Other current
 transfers (received) 21 422.7 438.0 456.1

Equals: Disposable income, net 22 1,053.4 1,117.5 1,203.9
 Less: Final consumption
 expenditures 23 1,073.8 1,130.3 1,207.2

Equals: Net saving 24 -20.4 -12.9 -3.3

Capital account

Net saving and
capital transfers 25 31.2 39.0 506.0
 Net saving 26 -20.4 -129.0 -33.0
 Capital transfers
 received (net) 27 51.6 519.0 539.0

Capital formation, net 28 145.3 144.3 145.6
 Gross fixed capital formation
 (acquisition of produced
 nonfinancial assets) 29 262.2 270.0 287.3
 Less: Consumption
 of fixed capital 30 127.8 136.7 153.2
 Acquisition of nonproduced
 nonfinancial assets 31 10.9 11.0 11.6

Net lending or net borrowing, 32 -114.1 -105.3 -95.0
capital account (25-28)

Financial account

Net lending or net 33 -114.1 -105.3 -95.0
borrowing (line 32)

Net acquisition of 34 79.1 94.8 142.5
financial assets

Currency and deposits 35 11.5 2.2 38.0
 Currency and
 transferable deposits 36 3.5 -4.6 8.5
 Time and savings deposits 37 8.0 6.9 29.5

Securities other than shares 38 49.8 57.3 95.0
 Open market paper 39 10.3 8.8 6.7
 Treasury securities 40 9.5 23.2 68.8
 Agency--and GSE-backed
 securities (1) 41 22.5 19.1 14.6
 Municipal securities 42 0.3 0.2 0.2
 Corporate and foreign bonds 43 7.1 6.0 4.6

Loans 44 16.4 13.9 10.7
 Short term
 (security repurchases) 45 7.9 6.7 5.1
 Long term (mortgages) 46 8.5 7.2 5.5

Shares and other equity 47 -18.2 -2.9 1.7
 Money market fund shares 48 4.0 3.4 2.6
 Corporate equities 49 -17.0 -4.8 -0.7
 Mutual fund shares 50 -5.2 -1.5 -0.2

Other accounts receivable 51 19.6 24.2 -2.7
 Trade receivables 52 8.1 6.9 5.3
 Taxes receivable 53 7.8 25.3 42.8
 Other (miscellaneous assets) 54 3.7 -8.0 -50.8

Net incurrence of liabilities 55 149.4 146.1 204.6
 Securities other
 than shares (municipals) 56 120.0 115.1 170.8
 Short term 57 10.4 -5.9 5.7
 Other 58 109.6 121.0 165.1
 Loans (short term) 59 0.3 0.2 0.5
 Other accounts
 payable (trade payables) 60 29.2 308.0 33.3

Addendum:
Net lending or net borrowing,
financial account (34-55) 61 -70.4 -51.3 -62.1

Other changes in volume account

Total other volume changes 62 32.9 43.1 14.3
 Other volume changes 63 -10.8 -10.9 -18.7
 Less: Statistical discrepancy
 (32-[34-55]) (2) 64 -43.7 -54.0 -32.9

Revaluation account

 Nonfinancial assets 65 78.4 493.1 463.6
 Structures 66 79.0 489.6 462.0
 Equipment and software 67 -0.5 3.6 1.6
 Shares and other equity 68 29.3 12.3 5.5
Changes in net worth due
 to nominal holding gains or
 losses 69 107.7 505.4 469.1

Changes in balance
sheet account
Change in net worth
(28+32+62+69) 70 171.8 587.5 534.0

Balance sheet account
(end of period)

Total assets 71 6,916.8 7,650.4 8,389.0

 Nonfinancial assets (3) 72 5,008.6 5,635.1 6,225.7
 Structures 73 4,784.0 5,399.1 5,979.8
 Equipment and software 74 224.6 236.1 245.9

 Financial assets 75 1,908.2 2,015.3 2,163.3

 Currency and deposits 76 191.6 193.9 2,318.0
 Currency and
 transferable deposits 77 44.9 40.3 48.8
 Time and savings deposits 78 146.7 153.6 183.1

 Securities other than shares 79 992.7 1,050.1 1,145.0
 Open market paper 80 161.6 170.4 177.1
 Treasury securities 81 364.2 387.4 456.2
 Agency--and GSE-
 backed securities (1) 82 351.2 370.3 384.9
 Municipal securities 83 4.4 4.6 4.8
 Corporate and
 foreign bonds 84 111.3 117.3 122.0

 Loans 85 256.3 207.3 280.9
 Short term (security
 repurchases) 86 123.5 130.2 135.3
 Long term (mortgages) 87 132.9 140.1 145.6

 Shares and other equity 88 173.3 182.7 189.9
 Money market fund shares 89 62.7 66.1 68.7
 Corporate equities 90 84.7 89.3 92.8
 Mutual fund shares 91 25.9 2.0 28.4

 Other accounts receivable 92 294.2 318.4 315.6
 Trade receivables 93 126.5 133.4 138.7
 Taxes receivable 94 68.4 89.0 126.4
 Other (miscellaneous
 assets) 95 99.3 96.0 50.6

Total liabilities
and net worth 96 6,916.8 7,650.4 8,389.0

 Liabilities 97 1,987.0 2,133.1 2,337.7
 Securities other
 than shares
 (municipals) 98 1,557.9 1,673.0 1,843.8
 Short term 99 106.1 100.2 105.9
 Other 100 1,451.8 1,572.8 1,737.9
 Loans (short term) 101 9.7 9.9 103.0
 Other accounts payable
 (trade payables) 102 419.5 450.3 483.6
 Net worth 103 4,929.7 5,517.3 6,051.3

NOTE. The state and local government accounts exclude state
and local employee retirement funds.

(1.) Government-sponsored enterprises (GSEs) consist of Federal Home
Loan Banks, Federal National Mortgage Association, Federal Home
Loan Mortgage Corporation, Federal Agricultural Mortgage Corporation,
Farm Credit System, the Financing Corporation, and the Resolution
Funding Corporation, and they included the Student Loan Marketing
Association until it was fully privatized in the fourth quarter of
2004.

(2.) The statistical discrepancy is the difference between net lending
or net borrowing derived in the capital account and the same concept
derived in the financial account The discrepancy reflects differences
in source data, timing of recorded flows, and other statistical
differences between the capital and financial accounts.

(3.) Excludes land and nonproduced nonfinancial assets.

Table 7. Rest of the World
[Billions of dollars]

 Line 2003
Current account
Foreign income from
the United States 1 1,889.8
 U.S. imports of
 goods and services 2 1,540.2
 U.S. income payments
 to rest of world 3 280.0
 Current taxes and transfer
 payments to rest of world 4 69.7

Less: Foreign outlays
to the United States 5 1,377.6
 U.S. exports of goods
 and services 6 1,040.8
 U.S. income receipts from
 rest of world 7 336.8

Equals: Net saving
(current external balance) 8 512.3

Capital account

Net saving 9 512.3
Net capital transfers 10 3.4
Less: Acquisition of nonproduced
 nonfinancial assets 11 0.2
Net lending or net borrowing,
 capital account (9+10-11) 12 515.6

Financial account

Net lending or net
borrowing (line 12) 13 515.6

Net acquisition of
U.S. financial assets 14 824.0
 Monetary gold and SDRs 15 0.6
 Currency and deposits 16 10.1
 Currency 17 16.6
 Transferable deposits 18 12.3
 Time deposits 19 -9.1
 Net interbank items
 due from U.S. banks 20 -9.7
 Securities other than shares 21 517.2
 Open market paper 22 9.2
 Treasury securities 23 276.0
 Agency--and GSE-
 backed securities (1) 24 3.1
 Municipal securities 25 8.0
 Corporate bonds 26 220.8
 Loans (short term) 27 269.2
 Security repurchases 28 270.1
 Loans to U.S.
 corporate business 29 -0.8
 Shares and other equity 30 97.9
 Corporate equities 31 34.0
 Foreign direct investment
 in the United States 32 64.0
 Other accounts receivable 33 -71.0
 Trade receivables 34 1.5
 Other (miscellaneous assets) 35 -72.5
Net incurrence of liabilities 36 288.9
 Currency and deposits 37 35.9
 Official foreign exchange 38 0.6
 Net IMF position. 39 -1.5
 U.S. private deposits 40 36.6
 U.S. government deposits 41 0.2
 Securities other than shares 42 41.6
 Commercial paper 43 12.9
 Bonds 44 28.7
 Loans (short term) 45 -9.8
 Acceptance liabilities
 to banks 46 0.0
 U.S. government loans 47 -2.1
 Bank loans n.e.c. 48 -7.7
 Shares and other equity 49 269.3
 Corporate equities 50 118.0
 U.S. government equity
 in IBRD, etc 51 1.4
 U.S. direct investment abroad 52 149.9
 Other accounts payable. 53 -8.0
 Trade payables. 54 6.1
 Other (miscellaneous
 liabilities) 55 -54.1
Addendum:
 Net lending, financial
 account (146). 56 535.0

Other changes in volume account

Total other volume changes 57 -333.1
 Other volume changes 58 -352.5
 Less: Statistical
 discrepancy (12-[14-06]) 59 -19.4

Revaluation account

Financial assets 60 399.0
 Securities other than shares 61 -3.8
 Treasury securities 62 -47.9
 Agency--and GSE-
 backed securities 63 1.9
 Corporate bonds 64 -37.7
 Shares and other equity 65 482.8
 Corporate equities. 66 469.7
 Foreign direct investment
 in the United States 67 13.1

Liabilities 68 777.5

 Currency and deposits 69 7.4
 Official foreign exchange 70 5.3
 Net IMF position 71 2.1
 Securities other than
 shares (corporate bonds). 72 140.4
 Shares and other equity 73 629.7
 Corporate equities 74 586.8
 U.S. direct investment abroad 75 42.9
Changes in net worth due to
 nominal holding gains or
 losses 76 -378.4

Changes in balance sheet account

Change in net worth (12+57+76) 77 -195.9

Financial balance sheet
account (end of period) (3)

Total financial assets 78 8,588.8
 Currency and deposits 79 606.7
 Currency 80 317.9
 Transferable deposits. 81 37.6
 Time deposits 82 143.2
 Net interbank items
 due from U.S. banks 83 110.0

 Securities other than shares 84 4,044.3
 Open market paper 85 135.8
 Treasury securities 86 1,513.5
 Agency--and GSE-backed
 securities (1) 87 653.1
 Municipal securities 88 19.5
 Corporate bonds 89 1,722.4

 Loans (short term) 90 585.2
 Security repurchases 91 460.2
 Loans to U.S.
 corporate business 92 125.0

 Shares and other equity 93 3,416.5
 Corporate equities 94 1,839.5
 Foreign direct investment
 in the United States 95 1,577.0

 Other accounts receivable 96 -5.9
 Trade receivables 97 45.7
 Other (miscellaneous assets) 98 -111.5

Total liabilities and net worth 99 8,588.8
 Total liabilities 100 6,594.1
 Currency and deposits 101 932.8
 Official foreign exchange 102 39.7
 Net IMF position 103 22.5
 U.S. private deposits 104 867.8
 U.S. government deposits 105 2.8
 Securities other than shares 106 1,141.5
 Commercial paper 107 267.1
 Bonds 108 874.4
 Loans (short term) 109 103.0
 Acceptance
 liabilities to banks 110 0.2
 U.S. government loans 111 42.0
 Bank loans n.e.c. 112 60.9
 Shares and other equity 113 4,179.3
 U.S. government
 equity in IBRD, etc 114 40.0
 U.S. direct investment abroad 115 2,059.9
 Corporate equities 116 2,079.4
 Other accounts payable 117 237.6
 Trade payables 118 47.5
 Other (miscellaneous
 liabilities) 119 190.0
 Net worth (external account) 120 1,994.6

 2004 2005
Current account
Foreign income from
the United States 2,237.4 2,587.9
 U.S. imports of
 goods and services 1,791.4 2,019.8
 U.S. income payments
 to rest of world 363.9 481.5
 Current taxes and transfer
 payments to rest of world 82.1 86.6

Less: Foreign outlays
to the United States 1,588.3 1,816.5
 U.S. exports of goods
 and services 1,178.1 1,303.1
 U.S. income receipts from
 rest of world 410.2 513.3

Equals: Net saving
(current external balance) 649.0 771.4

Capital account

Net saving 649.0 771.4
Net capital transfers 2.2 4.3
Less: Acquisition of nonproduced
 nonfinancial assets 0.0 -0.1
Net lending or net borrowing,
 capital account (9+10-11) 651.3 775.7

Financial account

Net lending or net
borrowing (line 12) 651.3 775.7

Net acquisition of
U.S. financial assets 1,320.6 1,045.5
 Monetary gold and SDRs -0.4 4.5
 Currency and deposits 123.6 80.0
 Currency 14.8 19.0
 Transferable deposits 27.5 26.0
 Time deposits 72.9 41.6
 Net interbank items
 due from U.S. banks 8.4 -6.6
 Securities other than shares 766.6 787.2
 Open market paper 44.8 8.6
 Treasury securities 346.8 287.1
 Agency--and GSE-
 backed securities (1) 109.0 157.1
 Municipal securities 6.5 4.0
 Corporate bonds 259.5 330.4
 Loans (short term) 211.2 108.0
 Security repurchases 204.9 47.4
 Loans to U.S.
 corporate business 6.3 60.6
 Shares and other equity 195.0 196.4
 Corporate equities 61.8 86.6
 Foreign direct investment
 in the United States 133.2 109.8
 Other accounts receivable 24.6 -130.5
 Trade receivables -1.1 7.8
 Other (miscellaneous assets) 25.7 -138.3
Net incurrence of liabilities 740.4 264.4
 Currency and deposits 86.7 75.1
 Official foreign exchange 0.6 0.6
 Net IMF position. -3.8 -10.2
 U.S. private deposits 89.9 86.8
 U.S. government deposits 0.0 -2.2
 Securities other than shares 124.6 76.4
 Commercial paper 62.8 38.5
 Bonds 61.8 38.0
 Loans (short term) -1.1 8.2
 Acceptance liabilities
 to banks 0.1 0.0
 U.S. government loans -3.7 -4.6
 Bank loans n.e.c. 2.5 12.9
 Shares and other equity 330.9 152.5
 Corporate equities 84.8 142.1
 U.S. government equity
 in IBRD, etc 2.0 1.3
 U.S. direct investment abroad 244.1 9.1
 Other accounts payable. 199.4 -47.8
 Trade payables. 3.5 6.3
 Other (miscellaneous
 liabilities) 195.9 -54.1
Addendum:
 Net lending, financial
 account (146). 580.2 781.1

Other changes in volume account

Total other volume changes -257.0 -88.1
 Other volume changes -185.9 -93.5
 Less: Statistical
 discrepancy (12-[14-06]) 71.1 -5.4

Revaluation account

Financial assets 277.8 -26.7
 Securities other than shares 39.0 -157.0
 Treasury securities -6.7 -96.9
 Agency--and GSE-
 backed securities 16.2 17.8
 Corporate bonds 79.5 -77.8
 Shares and other equity 238.9 130.2
 Corporate equities. 222.0 92.8
 Foreign direct investment
 in the United States 16.9 37.4

Liabilities 551.4 379.4

 Currency and deposits 3.1 -0.7
 Official foreign exchange 2.4 -5.5
 Net IMF position 0.8 -1.2
 Securities other than
 shares (corporate bonds). 56.8 -43.4
 Shares and other equity 491.5 429.5
 Corporate equities 396.2 383.9
 U.S. direct investment abroad 95.2 45.6
Changes in net worth due to
 nominal holding gains or
 losses -273.6 -406.1

Changes in balance sheet account

Change in net worth (12+57+76) 120.7 281.5

Financial balance sheet
account (end of period) (3)

Total financial assets 10,111.9 11,029.4
 Currency and deposits 732.3 812.7
 Currency 332.7 352.2
 Transferable deposits. 65.2 91.1
 Time deposits 216.0 257.6
 Net interbank items
 due from U.S. banks 118.3 111.8

 Securities other than shares 4,849.9 5,480.2
 Open market paper 180.6 189.2
 Treasury securities 1,803.5 1,993.8
 Agency--and GSE-backed
 securities (1) 778.3 953.1
 Municipal securities 26.0 30.0
 Corporate bonds 2,061.5 2,314.1

 Loans (short term) 796.4 904.4
 Security repurchases 665.1 712.5
 Loans to U.S.
 corporate business 131.2 191.8

 Shares and other equity 3,850.3 4,176.9
 Corporate equities 2,123.3 2,302.6
 Foreign direct investment
 in the United States 1,727.1 1,874.3

 Other accounts receivable -116.9 -44.7
 Trade receivables 44.6 52.4
 Other (miscellaneous assets) -161.5 -397.1

Total liabilities and net worth 10,111.9 11,029.4
 Total liabilities 7,996.6 8,632.6
 Currency and deposits 1,022.6 1,090.9
 Official foreign exchange 42.7 37.8
 Net IMF position 19.5 8.0
 U.S. private deposits 957.7 1,044.5
 U.S. government deposits 2.8 0.6
 Securities other than shares 1,322.9 1,355.9
 Commercial paper 329.9 368.4
 Bonds 993.0 987.5
 Loans (short term) 101.9 110.1
 Acceptance
 liabilities to banks 0.3 0.2
 U.S. government loans 38.3 33.7
 Bank loans n.e.c. 63.3 76.2
 Shares and other equity 5,001.6 5,583.6
 U.S. government
 equity in IBRD, etc 42.0 43.2
 U.S. direct investment abroad 2,399.2 2,453.9
 Corporate equities 2,560.4 3,086.5
 Other accounts payable 547.6 492.0
 Trade payables 51.0 57.3
 Other (miscellaneous
 liabilities) 496.6 434.7
 Net worth (external account) 2,115.3 2,396.8

(1.) Government-sponsored enterprises (GSEs) consist of Federal
Home Loan Banks, Federal National Mortgage Association, Federal
Home Loan Mortgage Corporation, Federal Agricultural Mortgage
Corporation, Farm Credit System, the Financing Corporation, and
the Resolution Funding Corporation, and they included the Student
Loan Marketing Association until it was fully privatized in the
fourth quarter of 2004.

(2.) The statistical discrepancy is the difference between net
lending or net borrowing derived in the capital account and the
same concept derived in the financial account. The discrepancy
reflects differences in source data, timing of recorded flows,
and other statistical differences between the capital and
financial accounts.

(3.) Excludes nonfinancial assets, including nonproduced
nonfinancial assets.

IBRD International Bank for Reconstruction and Development

IMF International Monetary Fund

SDRs Special Drawing Rights

n.e.c. Not elsewhere classified