Rhody exports grew in July but 6-month forecast gloomy
RHODE Island exports grew 6.9 percent in July from a year earlier but the outlook for the sector is gloomy. For a larger version of this chart CLICK HERE.
By Kimberley Donoghue PBN Web Editor Twitter: @kdonog
PROVIDENCE – Rhode Island exports grew 6.9 percent in July from a year earlier but the outlook for the sector is gloomy.
“The anticipation of weakening in worldwide economic activity translates to a slowdown in the demand for goods made in Rhode Island. In the next six months, orders from abroad are expected to subside, which would lower production and dampen export-related jobs in the local economy,” said e-foreasting.com chief economist Evangelos Simos.
Simos pointed to e-forecasting.com’s 47-country leading indicator composite, which declined for the fifth month in a row in July. The combined leading indicator for the 17-country Euro Area decline for the 10th consecutive month.
“Most important, the combined leading indicator for the emerging economies group of BRIC (Brazil, Russia, India and China) – which is considered the engine of last year’s global recovery – declined for the fourth month in a row,” said Simos.
Nationally, exports advanced 17.2 percent to $126.9 billion in July year-over-year. It was a 4.7 percent increase from June.
Rhode Island exports grew in July to $174.9 million, up from $163.6 million in July 2010 and $164.2 million in June 2011.
When compared to a year earlier, the growth was moderate: increasing 6.8 percent for manufactured goods to $109.9 million and up 7.1 percent for non-manufactured exports – agricultural goods, mining products and re-exports – to $65 million.
When comparing July to a month earlier, the fluctuations were greater – manufactured goods slipped 0.2 percent while non-manufactured exports blossomed by 20.1 percent.
In Rhode Island, manufactured goods exports dominated the state’s international trade, accounting for 63 percent of all exports.
The Ocean State ranked 14th among the 50 states through the first seven months of 2011 in export growth. Its overseas sales increased by an annual rate of 24.4 percent, seasonally adjusted.
“In the next six months, orders from abroad are expected to subside, which would lower production and dampen export-related jobs in the local economy,” said Simos.