Investment capital continued to pour out of the euro zone in August, with both direct and portfolio investment posting net outflows, European Central Bank data showed this morning.
Combined portfolio and direct investment posted a net €39.6 billion outflow, slightly more than in July, when the outflows stood at €38.9 billion.
The portfolio investment outflows were mainly due to net sales of euro area securities by investors outside the currency bloc, and to net buying of foreign bonds and notes by euro area investors, the ECB said.
Portfolio investment showed net outflows of €37.9 billion in August, after outflows of €35.6 billion in July. Direct investment was close to balance, with investment in equity capital abroad by euro area investors largely offset by net capital inflows, mainly inter-company loans, the ECB said.
The current account posted a €5 billion surplus in August, up from €2.0 billion in July. Adjusted for seasonal effects, the current account surplus stood at €2.8 billion.