U.S. exports decline as consequence of economic uncertainty

Today’s report showed that U.S. exports of goods and services in June 2011 decreased 2.3 percent from May 2011 to $170.9 billion

By ·

President Obama’s “National Export Initiative” of doubling exports by 2015 took a significant hit today, with the release of new figures by the Department of Commerce.

Today’s report showed that U.S. exports of goods and services in June 2011 decreased 2.3 percent from May 2011 to $170.9 billion. 

The monthly export value for U.S. consumer goods ($15.0 billion) was the highest on record.  U.S. imports of goods and services decreased 0.8 percent over this period to $223.9 billion, causing the U.S. trade deficit to increase 4.4 percent since May 2011 to reach $53.1 billion in June 2011. U.S. goods and services exports in the first half of 2011 are up 15.8 percent to $1,027.9 billion from the $887.6 billion in exports in first half of 2010.

“Exports remain a driving force in our economy,” said Acting U.S. Commerce Secretary Rebecca Blank. “Although numbers in June were lower than we’d hoped, exports have grown at a steady pace for the first half of this year, posting 15.8 percent growth over last year.”

As reported in LM, California’s exporters have been especially busy so far.

According to Blank, U.S. shippers “are on pace” to meet the President’s initiative, but she also allowed that “we are at a fragile time in the world economy.

Gregory Daco, principal U.S. economist with IHS Global Insight, agreed, noting that the international trade report for June was in line with the general view of a global slowdown.

He noted that both export and import volumes fell, with exports taking the biggest tumble. Weak foreign demand for industrial and capital goods were the most visible “culprits,” but even consumer goods exports posted only a meager 1.0 percent gain when excluding gem diamonds, jewelry, and pharmaceuticals (they grew 5.2 percent with these included). Automotive exports also posted a slim gain.

“Shippers won’t be suddenly reconfiguring their supply chains, however. Exports will continue to grow, but at a reduced velocity.”

In an interview with SCMR – a sister publication – he said the President’s export objective is “realistic.”


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Unlock the Value of Your Supply Chain Through Embedded Analytics
Learn how embedded analytics can provide deeper supply chain intelligence and help you extract maximum value from data for your supply chain operations
Download Today!
From the May 2017 Issue
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management, but what sort of technologies fall under these broad terms, and how will they change the management capabilities at our disposal? To find out, we talked to some noted supply chain analysts, consultants and technology executives and gathered six digital trends to watch.
Transportation Trends and Best Practices: The Battle for the Last Mile
2017 Technology Roundtable: Are we closer to “Intelligent” Logistics?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Going Beyond Rate Negotiations for Logistics Cost Savings
The pressure to reduce cost is a fundamental part of every organization today leaving many supply chain professionals constantly renegotiating rates. This webcast examines four areas that may hold untapped savings potentials and even help organizations negotiate better rates.
Register Today!
EDITORS' PICKS
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...

LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...