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California exports continue winning streak

Published: Saturday, Jan. 14, 2012 - 12:00 am | Page 6B

A wobbly U.S. economy, Middle East tensions and European fiscal crises have not been enough to derail the juggernaut that is California export trade.

The value of merchandise that California manufacturers shipped abroad in November totaled $14.07 billion, up 12.7 percent from $12.49 billion in November 2010, according to an analysis of Friday's U.S. Commerce Department trade figures by Beacon Economics, a consulting firm with offices in the Bay Area and Los Angeles.

It was the 25th straight month of year-over-year growth.

October exports totaled $13.81 billion.

"Even in inflation-adjusted terms, 2011 will easily turn out to be the best year ever for California's export trade," said Jock O'Connell, Beacon's international trade adviser.

Year-over-year Golden State export numbers were up in all categories.

Exports of manufactured goods gained 9.6 percent to $8.57 billion, non-manufactured exports (chiefly raw materials and agricultural products) rose 16.3 percent to $2.14 billion and re-exports climbed 18.7 percent to $3.36 billion.

Through November, the state's merchandise export trade for 2011 totaled $145.81 billion, outpacing the previous 11-month best of $141.26 billion (calculated in 2011 dollars) in 2008.

Looking ahead, O'Connell expects the pace of export growth will likely slow at some point in 2012.

"The near-term outlook has some risks," he said.

"Europe is flirting with recession, and the dollar has gained 10 percent in value since August as a result, reducing a portion of the new-found competitiveness of U.S. products.

"Fortunately, our two biggest foreign markets, Mexico and Canada, remain on more solid economic footing."

Goods imported to California in November had a value of $32.16 billion, up 7.5 percent from $29.9 billion in November 2010.

Some goods entering California go to other states, so exports are considered a more accurate measure of the state's trade health.

Nationally, the U.S. trade deficit had a monthly spike of more than 10 percent to $47.8 billion, due to an increase in the price of imported oil.

U.S. exports of goods and services edged down 0.9 percent from October to November to $177.8 billion. U.S. imports rose 1.3 percent in that period to a record $225.6 billion.

Analysts noted that the price of oil, which had been trading as low as $75 a barrel in October, rose to more than $100 per barrel in November.

© Copyright The Sacramento Bee. All rights reserved.


Call The Bee's Mark Glover, (916) 321-1184.

Read more articles by Mark Glover



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