California exports rise 21.8% in April
California exports rebounded again in April, jumping 21.8% from the same month last year and creating more confidence among economists that export trade in the state is picking up. April marked the sixth consecutive month of year-over-year increases, according to a Beacon Economics analysis of data released Thursday by the Commerce Department.
“For the time being, things look positive,” said Jock O’Connell, international trade advisor to Beacon Economics.
The state shipped $11.26 billion worth of electronics, agricultural products and other goods in April, up from $9.24 billion in April 2009. The increases were led by strong demand for agricultural goods and non-manufactured products overseas — exports of those goods jumped 29.6%. Exports of manufactured products were up 18.8% from April 2009.
The ports benefited from this traffic. The number of loaded shipping containers leaving the ports of Los Angeles and Long Beach in April was up 10% from the same month last year, although exports through the port of Oakland were essentially flat. Export tonnage at the state’s two primary international airports also grew in April, by 16.1% at LAX and by 37% at SFO.
But O’Connell is concerned that April’s growth may not last. The sovereign debt crisis in Europe has weakened the euro, so U.S. exports are now competing against less expensive European products. And austerity measures adopted by governments in Europe are going to lead to less spending overall, he said.
“The financial fallout is causing governments and central banks to adopt more austerity measures, which is likely to retard economic growth around the world,” he said.
Imports are recovering in California. The state imported $25.9 billion worth of goods in April, up from $19.9 billion a year earlier. California made up about 11% of the share of U.S. exports in April, Beacon said, down from 11.7% in December.
Mexico was the top destination for California exports, with $1.6 billion worth in April, according to a Beacon analysis of trade data from the first quarter of the year. Canada, China, Japan, South Korea and Taiwan are the next top export partners.
California’s electric machinery exports seem to be recovering, with the state exporting $2.1 billion worth in April, up from $1.8 billion in April 2009. Industrial machinery and computer exports are also rebounding from a plunge — the state exported $1.9 billion worth in April, up from $1.3 billion in April of 2009.
Electric machinery and industrial machinery/computers are the top two state exports by dollar value.
