The European Central Bank said Tuesday the euro area’s current account surplus fell to €9 billion in August as the goods balance weakened, narrowing the bloc’s excess of external receipts over payments.
The figure, adjusted for seasonality and working days, was down from a revised €27 billion in July. The ECB’s detailed data put the respective surpluses at €8.7 billion and €27.2 billion. Most of the monthly decline came from goods: Their surplus fell to €18.3 billion from €33.9 billion.
Services contributed a €12.9 billion surplus in August. Primary income posted a €4.4 billion deficit in August, while secondary income posted an €18 billion deficit. Together with goods and services, those income flows make up the current account.
Over the 12 months through August, the adjusted surplus totaled €250 billion, or 1.5% of euro area gross domestic product. That compared with €290 billion, or 1.8% of GDP, in the preceding 12-month period. The ECB attributed the decline chiefly to a smaller goods surplus and a larger secondary-income deficit, partly offset by stronger services and primary-income balances.
Eurostat separately reported an unadjusted €16.1 billion merchandise-trade deficit for August, as noted in our earlier coverage of August goods trade. That figure and the ECB’s adjusted goods surplus measure different transactions. The ECB’s balance-of-payments data differ in coverage and generally record goods when ownership changes, while Eurostat’s trade figures track goods crossing borders.
In the financial account, euro area residents bought a net €798 billion of securities from outside the bloc over the 12 months through August. Nonresidents bought a net €1,105 billion of euro area securities over the same period. Unlike the current account figures above, those financial-account totals are not adjusted for seasonal patterns or working days.
The ECB plans a second release of quarterly balance-of-payments and international investment position data on Oct. 28, covering figures through the second quarter and revisions dating back to 2013. It is scheduled to publish September’s monthly balance-of-payments figures on Nov. 19.
