California exports dip
December 5, 2017
• Down 2.6 percent in October year-over-year
• “Cloud of uncertainty … looms over U.S. trade policy at this time”
California’s export trade dipped in October, according to a Beacon Economics’ analysis of U.S. trade statistics by the U.S. Census Bureau.
Foreign shipments by California businesses totaled $14.82 billion for the month, a nominal 2.6 percent decline from the $15.21 billion recorded in October 2016.
The state’s exports of manufactured goods fell 4.6 percent to $8.87 billion from $9.30 billion one year earlier. Exports of non-manufactured goods (chiefly agricultural products and raw materials) ebbed slightly by 0.4 percent to $2.31 billion from $2.32 billion. Re-exports, meanwhile, rose by 1.7 percent to $3.65 billion from $3.59 billion.
“An abrupt but likely temporary fall-off in aerospace shipments, especially to Taiwan and the United Kingdom, propelled the downward movement in October’s export trade,” says Jock O’Connell, Beacon Economics’ international trade adviser. “Aerospace exports have historically fluctuated, often wildly, from month to month, and so this one month drop should not be a matter of lasting concern.”
California accounted for 10.9 percent of the nation’s overall merchandise export trade in October. Through the first nine months of 2017, the state’s exports are running 4.5 percent ahead of last year.
“Despite the decline on the month, both imports and exports are up in year-to-date terms because of an acceleration in activity on the part of the both the United States and its trading partners during the course of this year,” says Robert Kleinhenz, Beacon Economics’ executive director of research. “One would expect more of the same in 2018, notwithstanding the cloud of uncertainty that looms over U.S. trade policy at this time.”
California Imports Rise
The U.S. Department of Commerce has determined that California was the state-of-destination for 18.6 percent of all U.S. merchandise imports in October, with a value of $39.72 billion, 5.2 percent higher than the $37.76 billion in imported goods in October 2016. Manufactured imports totaled $35.97 billion, up 3.2 percent from $34.87 billion last year. Non-manufactured imports in October were valued at $3.75 billion, fully 29.8 percent higher than the $2.87 billion recorded one year earlier.