Annual

F.230 Direct Investment


The Financial Accounts (formerly known as the Flow of Funds accounts) are a set of financial accounts used to track the sources and uses of funds by sector. They are a component of a system of macroeconomic accounts including the National Income and Product accounts (NIPA) and balance of payments accounts, all of which serve as a comprehensive set of information on the economy’s performance.(1) Some important inferences that can be drawn from the Financial accounts are the financial strength of a given sector, new economic trends, changes in the composition of wealth, and development of new financial instruments over time.(1)
Sectors are compiled into three categories: households, nonfinancial businesses, and banks. The sources of funds for a sector are its internal funds (savings from income after consumption) and external funds (loans from banks and other financial intermediaries). (1) Funds for a given sector are used for its investments in physical and financial assets. Dividing sources and uses of funds into two categories helps the staff of the Federal Reserve System pay particular attention to external sources of funds and financial uses of funds.(2) One example is whether households are borrowing more from banks—or in other words, whether household debt is rising. Another example might be whether banks are using more of their funds to provide loans to consumers. Transactions within a sector are not shown in the accounts; however, transactions between sectors are.(2) Monitoring the external flows of funds provides insights into a sector’s health and the performance of the economy as a whole.
Data for the Financial accounts are compiled from a large number of reports and publications, including regulatory reports such as those submitted by banks, tax filings, and surveys conducted by the Federal Reserve System.(2) The Financial accounts are published quarterly as a set of tables in the Federal Reserve’s Z.1 statistical release.
(1) Teplin, Albert M. “The U.S. Flow of Funds Accounts and Their Uses.” Federal Reserve Bulletin, July 2001; http://www.federalreserve.gov/pubs/bulletin/2001/0701lead.pdf.
(2) Board of Governors of the Federal Reserve System. “Guide to the Flow of Funds Accounts.” 2000, http://www.federalreserve.gov/apps/fof/.

For questions on the data, please contact the data source: https://www.federalreserve.gov/apps/ContactUs/feedback.aspx?refurl=/releases/z1/%
For questions on FRED functionality, please contact: https://fred.stlouisfed.org/contactus/


   

Please select a date range

    1946    
 
 
    2025
Millions of U.S. Dollars
Line Name 2025 Preceding
Period
Year Ago
from Period
U.S. direct investment abroad:
Liab:
line 1
Rest of the world
310,127 317,441 317,441
line 2
Equity
397,680 330,999 330,999
line 3
Equity (other than reinvested earnings)
66,850 48,985 48,985
line 4
Reinvested earnings
330,830 282,014 282,014
line 5
Of which: Current-cost adjustment
13,862 13,739 13,739
line 6
Intercompany debt
-87,553 -13,558 -13,558
line 7
U.S. parents’ claims
3,180 -15 -15
line 8
Less: U.S. parents’ liabilities
90,731 13,542 13,542
Asset:
line 9
Nonfinancial corporate business
308,181 247,806 247,806
line 10
Of which: Current-cost adjustment
13,862 13,739 13,739
line 11
U.S.-chartered depository institutions
12,748 7,717 7,717
line 12
Property-casualty insurance companies
-42,059 17,302 17,302
line 13
Life insurance companies
4,434 12,170 12,170
line 14
Finance companies
6,339 2,794 2,794
line 15
Brokers and dealers
0 0 0
Foreign direct investment in U.S.:
Liab:
line 16
Nonfinancial corporate business
270,102 257,958 257,958
line 17
Of which: Current-cost adjustment
7,566 7,649 7,649
line 18
Nonfinancial noncorporate business
-601 -2,374 -2,374
line 19
Foreign banking offices in U.S.
4,450 14,576 14,576
line 20
Property-casualty insurance companies
6,949 14,337 14,337
line 21
Life insurance companies
-4,426 2,424 2,424
line 22
Finance companies
6,402 -1,540 -1,540
line 23
Brokers and dealers
26,571 45,251 45,251
line 24
Holding companies
-21,026 -38,297 -38,297
line 25
Funding corporations
0 0 0
Asset:
line 26
Rest of the world
288,421 292,335 292,335
line 27
Equity
300,002 290,644 290,644
line 28
Equity (other than reinvested earnings)
100,335 88,733 88,733
line 29
Reinvested earnings
199,667 201,911 201,911
line 30
Of which: Current-cost adjustment
7,566 7,649 7,649
line 31
Intercompany debt
-11,581 1,691 1,691
line 32
U.S. affiliates’ liabilities
9,786 -7,128 -7,128
line 33
Less: U.S. affiliates’ claims
21,366 -8,818 -8,818
Memo:
Direct investment, asset/liability presentation:
line 34
Net U.S. acquisition of direct investment assets
422,226 322,166 322,166
line 35
Equity (line 2)
397,680 330,999 330,999
line 36
Intercompany debt
24,546 -8,833 -8,833
line 37
U.S. parents’ claims (line 7)
3,180 -15 -15
line 38
U.S. affiliates’ claims (line 33)
21,366 -8,818 -8,818
line 39
Net U.S. incurrence of direct investment liabilities
400,519 297,058 297,058
line 40
Equity (line 27)
300,002 290,644 290,644
line 41
Intercompany debt
100,517 6,414 6,414
line 42
U.S. parents’ liabilities (line 8)
90,731 13,542 13,542
line 43
U.S. affiliates’ liabilities (line 32)
9,786 -7,128 -7,128
   

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