Bermuda's balance of payments surplus narrowed in the third quarter of 2004 to $60 million, down $5 million from the same period in 2003.

Surging imports of fuels, construction material and machinery helped to drive payments up by $70 million, while foreign currency earnings failed to keep pace, rising by $65 million for the three months ending September 30.

For the year to date, the balance of payments ran a surplus of $138 million compared to a surplus of $83 million for the same period in 2003.

The Bermuda Monetary Authority said travel receipts for 2003, largely from tourism, had also been revised while receipts for professional, managerial and technical services had been revised upwards for the first and second quarters of 2004.

Merchandise imports jumped $54 million or 26 percent to $258 million in the quarter as a result of rising fuel prices and the construction boom while all other sectors showed marginal increases year over year. For the quarter, total payments were $563 million compared to $493 million in 2003.

Receipts rose to $623 million from $558 million in the same period in 2003.

The increase was largely fuelled by receipts for professional, managerial and technical services ? mainly for international business ? which rose $40 million to $317 million.

Travel receipts, primarily from tourism, rose $20 million to $232 million from the revised figure of $112 million in 2003. that was offset by a decline in investment income, which slipped $5 million from $67 million to $62 million.

Most other sectors were relatively flat, the BMA said.

The capital and financial account, which accounts for long term capital investment and financial transfers, ran $89 million deficit in the quarter compared to a $15 million deficit in the same period in 2003.

Net long term investment ran a deficit of $13 million compared to a deficit of $50 million, while net short term investment was $76 million in the red compared to being $45 million in surplus in 2003.

For the year to date, the capital account recorded a deficit of $142 million, compared to a surplus of $16 million the first nine months of 2003.