California exports edge up
November 5, 2017
• September dollar volume is up 4.9 percent from year earlier
• “These numbers demonstrate the strength and diversity of California’s economy”
California’s export trade grew in September, according to a Beacon Economics’ analysis of U.S. trade statistics released by the U.S. Census Bureau.
Foreign shipments by California businesses totaled $14.19 billion for the month, a nominal 4.0 percent increase over the $13.65 billion recorded in September 2016.
The state’s exports of manufactured goods in September rose 7.5 percent to $8.79 billion from $8.18 billion one year earlier. Exports of non-manufactured goods (chiefly agricultural products and raw materials) climbed by 8.3 percent to $1.82 billion from $1.68 billion, says Beacon’s report. Re-exports, meanwhile, slipped by 5.5 percent to $3.58 billion from $3.79 billion.
“These numbers demonstrate the strength and diversity of California’s economy,” says Jock O’Connell, Beacon Economics’ international trade advisor. “Excluding re-exports, which are actually goods produced elsewhere, the state’s merchandise export trade grew by 7.6 percent. That’s not bad.”
September’s export growth was mirrored in a 7.1 percent increase in airborne export tonnage at Los Angeles International Airport, the state’s leading aviation gateway. Airborne shipments typically account for approximately half of the state’s merchandise export trade by dollar value, Beacon says.
California accounted for 10.9 percent of the nation’s overall merchandise export trade in September. Through the first nine months of 2017, the state’s exports are running 5.5 percent ahead of last year.
“These positive trade numbers match what we’ve seen in terms of national economic growth,” says Christopher Thornberg, founding partner of Beacon Economics. “The third quarter U.S. GDP numbers saw a real closing of the trade deficit, something that boosted growth.”
California Imports Rise
The U.S. Department of Commerce determined that California was the state-of-destination for 18.6 percent of all U.S. merchandise imports in September, with a value of $37.39 billion, 4.6 percent higher than the $35.76 billion in imported goods in September 2016.
Manufactured imports totaled $33.92 billion, up 3.7 percent from $32.72 billion last year. Non-manufactured imports in September were valued at $3.47 billion, fully 14.1 percent higher than the $3.04 billion recorded one year earlier.