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 Following
monthly gains of 7.9 percent in July, foreign sales from Nevada's companies
plunged 31.8 percent in August.
The $100.1 million monthly drop in foreign shipments from the previous month
brought exports to $214.9 million in August, adjusted for seasonal
variation, the lowest level in 14 months.
Compared with last year, the latest snapshot in state exports shows a
slowdown in foreign demand for goods made in the Silver State. In August of
this year, consumers and businesses from abroad bought $15 million, or 6.5
percent, less goods made in Nevada than a year ago.
Five exporting industries contributed 69 percent to all state exports in
August. Precious metals -- mainly gold -- was the state's largest export
earner, generating $60 million in foreign sales in August, adjusted for
seasonal variation. Precious metals accounted for 28 percent of all foreign
sales, plummeting by 32 percent from a year ago.
Electrical equipment -- mostly digital integrated circuits -- was the
state's second-largest exporting industry creating $29 million of export
revenues. Machinery was the third-largest exporting industry with shipments
abroad of $21 million in August.
Gaming equipment, a national export leader in the industry, was the
fourth-largest export earner, generating $20 million in foreign sales.
However, Augusts' exports of gaming goods dropped by 42 percent from a year
ago. Copper ore followed in the list of the top-five exporting industries.
At the broad economic level, exports from state manufacturing companies went
down sharply in August. Shipments abroad from Nevada plants dropped 39.6
percent from the previous month to $149.4 million, adjusted for seasonal
variation.
Manufactured goods accounted for 70 percent of all state exports in August.
Compared with last year, August's shipments abroad from state factories were
$26.4 million lower. This is important news for the state's job market and
overall economic development as the industrial mix of foreign sales implies
that one in every three factory jobs is tied to exports of manufactures.
In particular, August's exports of manufactured goods supported 15,800
manufacturing jobs in Nevada. Of great consequence, selling abroad
domestically produced goods sparks off significant ripple effects in other
industries.
An additional 19,000 state jobs in wholesale and retail trade,
transportation, business services and to a lesser degree utilities, mining
and agriculture, were generated by exports of manufactured goods in August.
Exports of non-manufactured goods totaled $65.5 million in August, a 3.5
percent decrease from July. This group of shipments abroad consists of
agricultural goods, mining products, and re-exports which are foreign
merchandise that entered the state as imports and are exported in
substantially the same condition as when imported.
At the national level, exports of goods, adjusted for seasonal variation,
advanced 2.1 percent in August to a record-high $76.7 billion from July,
mainly reflecting increases in capital goods; automotive vehicles, parts,
and engines; industrial supplies and materials; foods, feeds, and beverages.
Looking at export growth, a measure of the vigor that state companies break
through foreign markets, Nevada ranked second among the 50 states in the
first eight months of this year because of record performance in the
previous months of the year.
Nevada's annual growth in foreign sales was 41.4 percent compared with the
same period a year ago, adjusted for seasonal variation. For the nation as a
whole, exports increased 11.2 percent during the same period.
What are the prospects for Nevada exports? According to a recent business
survey by the Institute of Supply Management, the nation's supply executives
continue to be optimistic about the prospects of growing export markets. The
Tempe, Ariz., based research institute reported that their export orders
index continued to show growth in new export orders in September for the
47th consecutive month.
More important, September's reading implies that the speed of new orders
received from abroad is higher than in August. From the pool of respondents
of the largest U.S. corporations who sell their products abroad, 17 percent
reported greater export orders, 42 percent reported no change in export
orders from August's levels and only 5 percent reported smaller export
orders.
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