U.S. saw strong inflow of foreign investments in July

The U.S. Department of the Treasury has shared Treasury International Capital Data for July. Here are the main takeaways:

1. Foreign Investments: The U.S. saw a total investment inflow of $140.6 billion from foreign entities. Such an inflow shows a positive sentiment among foreign investors towards the U.S. market, suggesting they see the U.S. as a stable or profitable place to park their money. Breaking it down:

- Private foreign investors brought in $149.4 billion.

- Official foreign institutions, like governments and central banks, withdrew $8.8 billion.

2. U.S. Securities: Foreigners bought more long-term U.S. securities in July, adding $45.6 billion to their portfolios.

- Private investors purchased $58.6 billion worth.

- Official institutions sold off $13.1 billion.

3. U.S. Investments Abroad: Americans also diversified, buying $36.8 billion in long-term foreign securities.

4. Adjustments & Estimates: After considering factors like stock swaps, the net foreign purchases of long-term U.S. securities is estimated at $8.8 billion for July.

5. U.S. Treasury Bills: Foreign entities increased their holdings here by a substantial $75.8 billion.

6. Short-term U.S. Securities: Foreign holdings in these securities and related liabilities went up by $85.9 billion.

7. Bank Liabilities: U.S. banks saw an increase in their net dollar liabilities to foreign parties by $46.0 billion.

In general, the data above gave a rather positive outlook of the U.S. economy, especially by private foreign investors.