Island in the third quarter, resulting in an 18 percent decrease in current account surplus compared to the same period last year.

Bermuda had an estimated current account surplus of $70 million during the three months to September 30, $15 million less than the surplus of $85 million in third quarter 1997. The figures were released yesterday in the BMA's quarterly report.

Bermuda Monetary Authority (BMA) general manager Malcolm Williams said the decrease was not a cause for concern. He said the BMA was making a conservative estimate. The increase in imports indicated a growing economy.

"The decrease in current account surplus is not material,'' he said. "We are being conservative until we get a clearer picture. What is good is that there is a continuing surplus on current account. It is an indication of healthy growth in the local economy.'' While receipts were at about the same level, current account payments rose $14 million or 3.7 percent to $397 million in the third quarter compared to third quarter 1997.

While payments in the other goods, services and income category were $12 million or 19 percent lower than last year, spending on imports rose by $9 million to $166 million, and by $9 million to $48 million on current transfers.

The current transfers category represents overseas payments by residents for such items as maintenance of dependents, charitable donations, and workers' remittances.

Meanwhile, receipts for the three months added up to $467 million, two million more than the same period last year. Receipts in the international business sector, represented in the professional, managerial and technical services category, rose by five million to $215 million.

Mr. Williams said receipts had reached a "healthy plateau''.

Bermuda's capital and financial account, made up of capital transfers, long term investment and short term investment, had a net outflow of $55 million in the third quarter, compared to $85 million in third quarter 1997.

The BMA stated the decrease was mainly due to a fall by $7 million in net long term investment, reflecting increases in direct investment inflows into Bermuda, and a fall in net short term investment by $24 million attributed to changes in the currency positions of Bermuda's banks.

Bermuda's banks and deposit companies net foreign currency assets totaled $13.063 billion at the end of the third quarter. Net foreign currency liabilities totalled $12.285 billion, leaving a net foreign currency position of $778 million, $101.6 million more than at the end of second quarter 1998.

The banks and deposit companies had total deposits of $2.2 billion at the end of third quarter, with loans, advances and mortgages of $1.846 billion.

In the first nine months of the year Bermuda's current account payments totaled $1,049 million, $1 million less than the same period last year.

Receipts totaled $1,220 million, 1.2 percent above the same period 1997.

The current account surplus for the nine months was $171 million, about 5.5 percent above the same period last year.

The BMA also reported that notes and coins in circulation at the end of the third quarter was $2.248 billion, representing a 9.9 percent year-on year growth.