Farm Exports Fall 4.3%
-February 7,2019-
For the first time in more than a year, California’s merchandise export trade fell in November, according to Beacon Economics’ analysis of U.S. trade statistics released this morning by the U.S. Census Bureau following a lengthy delay caused by the Federal government shutdown.
Foreign shipments by California businesses totaled $15.00 billion for the month, a nominal 2.2% decline from the $15.33 billion recorded in November 2017. While exports of manufactured goods were off by 3.2% to $9.06 billion from $9.36 billion in November 2017, exports of non-manufactured goods (chiefly agricultural products and raw materials) fell by 4.3% to $2.22 billion from $2.32 billion. The value of re-exported goods meanwhile did rise by 1.9% to $3.72 billion from $3.65 billion.
“A nearly 15% drop in exports to China was a major culprit, but a stronger dollar, tariffs aimed at California farm products, and global price declines in commodities like oil and chemicals were not helpful.” said Jock O’Connell, Beacon Economics’ longtime International Trade Adviser.
The Golden State accounted for 10.7% of the nation’s overall merchandise export trade in November, down from 11.3% one year earlier. California exports in the first eleven months of 2018 amounted to $164.43 billion, 5.0% higher than the $156.61 billion at the same point in 2017.
“Given the punitive tariffs slapped on U.S. products by Mexico, Canada, and China, along side an appreciating dollar, a slowing global economy, and the front running of exports, I’m surprised the data is as good as it is,” said Christopher Thornberg, Founding Partner of Beacon Economics.
Three month trend
California’s merchandise exports during the September-November period totaled $45.42 billion, a nominal gain of 2.2% over the $44.42 billion in the same period in 2017. Eleven commodity groups posted exports of at least $1 billion during this three-month period.
On the plus side, shipments of Computer & Electronic Products (computers and peripherals; communication, audio, and video equipment; navigational controls; and electro-medical instruments) rose by 3.7% to $11.74 billion from $11.32 billion.