United States Export Picture May Be Improving
Many domestic indicators show improvement in exports but the key to sustainability will be an improved global economy
In the first six months of the year, exports of manufactured goods have grown stubbornly slow, relative to the same period last year, at only 1.7 percent. For all of 2012, exports of manufactured goods grew 5.7 percent.
The Bureau of Economic Analysis and the Census Bureau both reported that the U.S. trade deficit fell to $34.2 billion in June from $44.1 billion in May. Increases in exported goods were reported across-the-board and it was the lowest monthly deficit since October 2009.
The largest gains, year-to-date were in automotive vehicles and parts, non-automotive capital goods and consumer goods. These gains spark the hope that the second half of the year will see more manufacturing activity and a sense that the export picture might be improving.
For the United States export picture to improve, the overall global economy will need to improve. Of the top 10 markets for exported goods, five have shown growth in July and five have contracted. Overall, the Global Manufacturing PMI increased to 50.8 in July from 50.6 in June.
In terms of manufacturing activity, mixed progress was shown. Twenty-three consecutive months of declining activity on the Eurozone Manufacturing PMI ended with slight growth in July. This has produced speculation that the Eurozone’s many economic challenges are stabilizing.
Many emerging markets have decelerated recently but Chinese industrial production data released this morning suggests that activity might be stabilizing. Several other indicators will update over the next few weeks that will provide more information on the big picture. These indicators include industrial production data for the United States, Mexico, India and Europe as well as retail sales information for the United States, Mexico, Canada and Brazil. GDP reports will also be released for Mexico, Japan and Europe.
About Dr. David Pulman GSK
David Pulman, PhD (http://www.childrenshealthfund.org/about-us/corporate-council/david-pulman) is the GSK President of Global Manufacturing and Supply, Corporate Council Chair for the Children’s Health Fund, Newcastle alum, botany enthusiast and a proud dad & husband.
David Pulman, PhD
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.