Despite growing concerns that the plodding and anemic economic recovery may be stagnating, California exporters in May posted their 19th consecutive month of healthy year-over-year gains.
May shipments by state exporters totaled $13.20 billion, a gain of 10.5 percent over the $11.95 billion reported in May of last year, according to an analysis by Beacon Economics of the most recent monthly foreign trade data released by the US Commerce Department.
California's manufactured exports were up by 6.1 percent in May, while non-manufactured exports such as raw materials and agricultural products jumped 24.2 percent. Re-exports, those goods brought into the US and then shipped out again such as through a Foreign Trade Zone, also posted a strong 17.2 percent increase over re-export numbers in May of last year.
"Adjusting for inflation, California’s export trade is as robust as it was prior to the recession,” Beacon Economics’ International Trade Adviser Jock O’Connell said.
Beacon Economics Founding Partner Christopher Thornberg explained that export activity is a key component of both the US and California recovery.
"We opened up a huge deficit in the boom years," Thornberg said. "To get back on solid footing, exports need to continue to rise."
Looking forward, the Beacon Economics analysis forecasts sustained growth in California’s export trade, particularly in the second half of the year when the pace of foreign trade normally picks up.
"With the dollar as cheap as it is, California as well as other US goods are selling at bargain prices on the world market," O'Connell said.
In addition, the recent reprieve from steadily rising oil prices should help exporters, O'Connell said, by keeping transportation costs in check at least through the summer.
Even as most of the state's chief international trading partners are taking steps to battle inflation or curtail budget deficits, Beacon Economics is forecasting that those foreign economies will continue to grow and continue to draw in imports from California.
On the import side of the ledger, the value of foreign shipments entering the US via California's airports, seaports, and border crossings rose by 14.7 percent compared to May, 2010.
As the nation’s primary gateway to the Pacific Rim, California derives ample economic benefits from the import trade.
"As much as we might like to reduce our dependence on imported goods, it’s worth emphasizing that moving imported goods to markets throughout the nation represents a vital source of jobs – many of them well-paying – in a state where unemployment rates remain perilously high," O'Connell said.
Showing posts with label California exports. Show all posts
Showing posts with label California exports. Show all posts
Thursday, July 14, 2011
Friday, June 10, 2011
California Exporters Buck Economic Trends
Bucking the recent slowing trends in the global economic recovery, California exporters posted an impressive 14.1 percent increase in April over the year-ago period with shipments totaling $12.9 billion, according to an analysis, by Beacon Economics, of foreign trade data released Thursday by the United States Commerce Department.
The April numbers are the most recent released by the Commerce Department.
California's manufactured exports rose by 10.7 percent in April, while non-manufactured exports such as raw materials and agricultural products were up by 21.3 percent over April 2010. Re-exports, those goods brought into the U.S. and then shipped out again such as through a Foreign Trade Zone, posted a 22.4 increase compared to April of last year.
“On an inflation-adjusted basis, California’s export trade in April nearly equaled the pre-recession high for that month achieved back in 2007,” Beacon Economics’ International Trade Adviser Jock O’Connell said.
O'Connell noted that April marked the 18th consecutive month of strong year-over-year gains in California’s merchandise export trade.
The gains, Beacon Economics' Founding Partner Christopher Thornberg said, could have implications for the broader economy.
"Exports are likely to play an important role in the economic boost we expect to see in the second half of this year," Thornberg said.
Imports, while still showing growth in April, did not grow at the strong pace of exports with the value of foreign goods entering the U.S. through California’s seaports, airports and border crossings increasing by just 9.9 percent compared to April 2010.
Beacon Economics predicts that California’s job-generating export trade will continue to expand, albeit at a somewhat more moderate pace through the remainder of the year.
“The economic growth rates of several of our principal trading partners have been decelerating, in some cases like China and India from speeds that were plainly unsustainable over the long-term.” O’Connell said. “That’s apt to shrink but certainly not stifle their appetite for imported goods.”
However, O'Connell added that California exporters should continue to enjoy the competitive benefits of a dollar that has been trading at some of the lowest levels in decades.
The April numbers are the most recent released by the Commerce Department.
California's manufactured exports rose by 10.7 percent in April, while non-manufactured exports such as raw materials and agricultural products were up by 21.3 percent over April 2010. Re-exports, those goods brought into the U.S. and then shipped out again such as through a Foreign Trade Zone, posted a 22.4 increase compared to April of last year.
“On an inflation-adjusted basis, California’s export trade in April nearly equaled the pre-recession high for that month achieved back in 2007,” Beacon Economics’ International Trade Adviser Jock O’Connell said.
O'Connell noted that April marked the 18th consecutive month of strong year-over-year gains in California’s merchandise export trade.
The gains, Beacon Economics' Founding Partner Christopher Thornberg said, could have implications for the broader economy.
"Exports are likely to play an important role in the economic boost we expect to see in the second half of this year," Thornberg said.
Imports, while still showing growth in April, did not grow at the strong pace of exports with the value of foreign goods entering the U.S. through California’s seaports, airports and border crossings increasing by just 9.9 percent compared to April 2010.
Beacon Economics predicts that California’s job-generating export trade will continue to expand, albeit at a somewhat more moderate pace through the remainder of the year.
“The economic growth rates of several of our principal trading partners have been decelerating, in some cases like China and India from speeds that were plainly unsustainable over the long-term.” O’Connell said. “That’s apt to shrink but certainly not stifle their appetite for imported goods.”
However, O'Connell added that California exporters should continue to enjoy the competitive benefits of a dollar that has been trading at some of the lowest levels in decades.
Friday, May 13, 2011
Calif. Export Levels Surpass Dot.Com Era Levels In March
California exporters shipped $13.95 billion worth of cargo in March, a 12.8 percent gain over March 2010 and the 17th consecutive month of year-over-year gains, according to an analysis by Beacon Economics of foreign trade data released Wednesday by the U.S. Commerce Department.
Manufactured exports rose by 12.8 percent compared to the year-ago period, according to Beacon, while non-manufactured exports – primarily raw materials and agricultural products – were up by 10.9 percent. Re-exports, those goods brought into the U.S. and then shipped out again such as through a Foreign Trade Zone, increased by 17.9 percent in March.
“On an inflation-adjusted basis, California’s export trade hit a new high for the month of March, even exceeding the level of exports recorded at the height of the dot.com boom a decade ago,” Beacon’s International Trade Adviser Jock O’Connell said.
O'Connell said that it’s remarkable that the latest gains occurred despite the disruption brought to the normal transpacific trading patterns by the March 11 earthquake and tsunami in Japan, California's fourth largest export market.
Beacon analysis experts predict that California’s export trade will continue to see positive growth. The report goes on to state that the chief factors currently aiding California exporters is growth in the state's target markets and the drop of the dollar to its lowest value in decades.
"The importance of these steady gains by exporters to the overall recovery of the U.S. economy shouldn't be underestimated," Beacon founding partner Christopher Thornberg said. "Rebalancing our external accounts is a critical component of healing the economy in the aftermath of the massive financial bubble that hit in the middle part of the last decade."
An apparent reprieve from steadily rising oil prices should also help exporters by keeping transportation costs in check at least through this summer, Beacon's O'Connell said.
Manufactured exports rose by 12.8 percent compared to the year-ago period, according to Beacon, while non-manufactured exports – primarily raw materials and agricultural products – were up by 10.9 percent. Re-exports, those goods brought into the U.S. and then shipped out again such as through a Foreign Trade Zone, increased by 17.9 percent in March.
“On an inflation-adjusted basis, California’s export trade hit a new high for the month of March, even exceeding the level of exports recorded at the height of the dot.com boom a decade ago,” Beacon’s International Trade Adviser Jock O’Connell said.
O'Connell said that it’s remarkable that the latest gains occurred despite the disruption brought to the normal transpacific trading patterns by the March 11 earthquake and tsunami in Japan, California's fourth largest export market.
Beacon analysis experts predict that California’s export trade will continue to see positive growth. The report goes on to state that the chief factors currently aiding California exporters is growth in the state's target markets and the drop of the dollar to its lowest value in decades.
"The importance of these steady gains by exporters to the overall recovery of the U.S. economy shouldn't be underestimated," Beacon founding partner Christopher Thornberg said. "Rebalancing our external accounts is a critical component of healing the economy in the aftermath of the massive financial bubble that hit in the middle part of the last decade."
An apparent reprieve from steadily rising oil prices should also help exporters by keeping transportation costs in check at least through this summer, Beacon's O'Connell said.
Thursday, December 16, 2010
Beacon Analysis: California Sets Export Record in October
California exporters turned in their best performance ever for the month of October, beating the previous record set back in October 2007 by 1.1 percent, according to a Beacon Economics analysis of the most recently available foreign trade data from the U.S. Commerce Department.
"Our export trade is now operating at a pace not seen since the onset of the Great Recession," said Jock O'Connell, Beacon Economics' International Trade Adviser.
Golden State businesses shipped $12.91 billion in goods abroad in October, surpassing the $11.08 billion in goods exported in the same period last year by a sizable 16.5 percent margin.
Exports from California manufacturers also jumped in October, climbing 10.7 percent compared to October 2009 and shipments of Golden State agricultural goods and other non-manufactured products increased a significant 34.6 percent over the year-ago period. Re-exports of items previously imported into the state, said the Beacon report for October, also jumped by 25.2 percent.
October, in which California accounted for 11 percent of all U.S. merchandise exports, marked 12 straight months year-over-year increases in the state's export trade.
Loaded export container volumes at the Southern California ports of Long Beach and Los Angeles increased by 11.8 percent from October 2009, while Los Angeles International Airport saw a 31.4 percent increase in exported air freight tonnage.
In the Bay Area, loaded export container volumes at the Port of Oakland rose by just 0.3 percent while exported air freight tonnage through San Francisco International jumped up by 15.8 percent from last October.
Beacon also reports that U.S. Commerce Department data shows that California’s merchandise import trade totaled $28.85 billion in October, an increase of 7.2 percent over last October. The Golden State accounted for 17 percent of all U.S. merchandise imports in October.
Beacon's O'Connell was optimistic about strong employment growth resulting from the increase in export activity.
"At some point, you would naturally expect higher exports to goose the employment numbers," said O'Connell. "However, California firms have made great strides in efficiency, enabling them to do more with less. Bear in mind that, while manufacturing output in this state increased by about 50 percent in this decade, employment in our manufacturing sector declined by one-third."
According to Beacon's analysis of California Employment Development Department data, there are currently about 4,800 fewer workers in the manufacturing sector and 6,800 fewer in the transportation and warehousing sector than there were last October.
"Exporters are also likely to be worried about the outlook for California exports going into the New Year," O'Connell observed. "Austerity measures across Europe, an appreciating Japanese currency, unrest in Mexico, and renewed efforts by Chinese authorities to slow down their economy could all put a serious damper on California exports," he explained.
"Our export trade is now operating at a pace not seen since the onset of the Great Recession," said Jock O'Connell, Beacon Economics' International Trade Adviser.
Golden State businesses shipped $12.91 billion in goods abroad in October, surpassing the $11.08 billion in goods exported in the same period last year by a sizable 16.5 percent margin.
Exports from California manufacturers also jumped in October, climbing 10.7 percent compared to October 2009 and shipments of Golden State agricultural goods and other non-manufactured products increased a significant 34.6 percent over the year-ago period. Re-exports of items previously imported into the state, said the Beacon report for October, also jumped by 25.2 percent.
October, in which California accounted for 11 percent of all U.S. merchandise exports, marked 12 straight months year-over-year increases in the state's export trade.
Loaded export container volumes at the Southern California ports of Long Beach and Los Angeles increased by 11.8 percent from October 2009, while Los Angeles International Airport saw a 31.4 percent increase in exported air freight tonnage.
In the Bay Area, loaded export container volumes at the Port of Oakland rose by just 0.3 percent while exported air freight tonnage through San Francisco International jumped up by 15.8 percent from last October.
Beacon also reports that U.S. Commerce Department data shows that California’s merchandise import trade totaled $28.85 billion in October, an increase of 7.2 percent over last October. The Golden State accounted for 17 percent of all U.S. merchandise imports in October.
Beacon's O'Connell was optimistic about strong employment growth resulting from the increase in export activity.
"At some point, you would naturally expect higher exports to goose the employment numbers," said O'Connell. "However, California firms have made great strides in efficiency, enabling them to do more with less. Bear in mind that, while manufacturing output in this state increased by about 50 percent in this decade, employment in our manufacturing sector declined by one-third."
According to Beacon's analysis of California Employment Development Department data, there are currently about 4,800 fewer workers in the manufacturing sector and 6,800 fewer in the transportation and warehousing sector than there were last October.
"Exporters are also likely to be worried about the outlook for California exports going into the New Year," O'Connell observed. "Austerity measures across Europe, an appreciating Japanese currency, unrest in Mexico, and renewed efforts by Chinese authorities to slow down their economy could all put a serious damper on California exports," he explained.
Friday, September 10, 2010
Exports and Imports Through California Climb in July, Rest of the Year in Question
Exporters throughout California remained one of the state's bright economic spots during July as the value of overseas export shipments rose by 21.4 percent over the same month last year.
The $11.86 billion in goods exported during July surpassed the $9.77 billion the state's exporters sent overseas in July 2009, according to an analysis by Beacon Economics of international trade data released Thursday by the U.S. Commerce Department.
According to Jock O'Connell, Beacon Economics' International Trade Adviser, July marked the ninth consecutive month of year-over-year increases in California's export trade.
"California's economy would obviously be in even worse shape were it not for strong foreign demand for goods produced by our manufacturers and farmers," O'Connell said.
The state's July export trade in manufactured products was up 20.1 percent over July 2009, while shipments of agricultural goods and other non-manufactured products increased by 10.6 percent. In addition, re-exports of items previously imported into the state rose by 32.1 percent.
Nationwide, California accounted for 11.4 percent of all U.S. merchandise exports in July.
Despite the recent uptick in activity, O'Connell pointed out that California's export totals are still below pre-recession levels.
In inflation-adjusted terms, California’s export trade in July 2008 was $12.65 billion, some 6.7% higher than the value of exports this July.
O'Connell also predicted that the recent growth in California exports would likely decline through the end of the year.
"Madam Olga’s crystal ball may be full of good cheer, but almost no one else is forecasting brisk growth in world trade this fall,” O’Connell warned. “Instead, governments have been joining businesses and consumers on the economic sidelines. As spending falters and demand shrinks, so too will trade."
O'Connell added, "There's more than ample reason to be cautiously pessimistic about the next few months."
Imports through the state were also up in July, with the U.S. Commerce Department numbers reporting that California's merchandise import trade totaled $28.5 billion in July, an increase of 23.8 percent over the year-ago period.
According to Beacon, California accounted for 17.4 percent of all U.S. merchandise imports in July.
The $11.86 billion in goods exported during July surpassed the $9.77 billion the state's exporters sent overseas in July 2009, according to an analysis by Beacon Economics of international trade data released Thursday by the U.S. Commerce Department.
According to Jock O'Connell, Beacon Economics' International Trade Adviser, July marked the ninth consecutive month of year-over-year increases in California's export trade.
"California's economy would obviously be in even worse shape were it not for strong foreign demand for goods produced by our manufacturers and farmers," O'Connell said.
The state's July export trade in manufactured products was up 20.1 percent over July 2009, while shipments of agricultural goods and other non-manufactured products increased by 10.6 percent. In addition, re-exports of items previously imported into the state rose by 32.1 percent.
Nationwide, California accounted for 11.4 percent of all U.S. merchandise exports in July.
Despite the recent uptick in activity, O'Connell pointed out that California's export totals are still below pre-recession levels.
In inflation-adjusted terms, California’s export trade in July 2008 was $12.65 billion, some 6.7% higher than the value of exports this July.
O'Connell also predicted that the recent growth in California exports would likely decline through the end of the year.
"Madam Olga’s crystal ball may be full of good cheer, but almost no one else is forecasting brisk growth in world trade this fall,” O’Connell warned. “Instead, governments have been joining businesses and consumers on the economic sidelines. As spending falters and demand shrinks, so too will trade."
O'Connell added, "There's more than ample reason to be cautiously pessimistic about the next few months."
Imports through the state were also up in July, with the U.S. Commerce Department numbers reporting that California's merchandise import trade totaled $28.5 billion in July, an increase of 23.8 percent over the year-ago period.
According to Beacon, California accounted for 17.4 percent of all U.S. merchandise imports in July.
