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With solid gains in foreign demand for New Hampshire goods at the tail end
of the year, state exports were much stronger overall during 2004 than in
recent years.
Foreign sales of goods from New Hampshire companies, adjusted for seasonal
variation, rose $3.9 million, or 2 percent, in December to $202.1 million,
following a dip of 0.9 percent in November.
State exporters sold 9.9 percent more goods last December than in December
of 2003.
For the full 2004 calendar year, state exports increased by $350 million
from 2003, to $2.3 billion. Last year’s sales abroad are the result of the
undergoing improvement in global economic conditions and the fall in the
value of the dollar.
A weaker currency makes locally produced goods less expensive and
consequently more competitive in international markets.
Demand for manufactured goods drove overall sales from New Hampshire’s
exporting companies. Last December, foreign shipments from state factories
accounted for 80 percent of all sales abroad.
Exports of manufactured goods in December totaled $161.7 million.
For all of 2004, exports of New Hampshire manufactured goods surged by 17.6
percent from 2003, to $1.9 billion. For the nation, exports of manufactured
goods rose 11.3 percent to their highest annual level on record.
Exports of non-manufactured goods went down 2.9 percent in December to $40.5
million, also adjusted for seasonal variation. This group of shipments
abroad consists of agricultural goods, mining products, and re-exports.
The state’s export performance translates to an annual growth rate in
foreign sales of 18.1 percent for 2004, compared to a gain of 3.7 percent in
2003. As a result, New Hampshire ranked 15th among the 50 states in export
growth in 2004.
In a global perspective, U.S. exports of goods rose by 13.2 percent during
2004, about three times faster than in 2003, hitting the highest annual
level on record. For the world’s major 23 industrial countries, the combined
volume of their exports is estimated to have jumped by 15.6 percent in 2004.
New Hampshire exporters outperformed all industrial countries and the nation
in export growth during 2004.
Maine ranks 33rd
Following a decline of 12.4 percent in November, exports from Maine’s
companies dropped again 5.7 percent in December to $182.9 million, adjusted
for seasonal variation. However, for the full 2004 calendar year, state
exports rose by $237 million from 2003, to $2.4 billion, the highest annual
level on record.
December’s decline in foreign sales was broad-based. Exports of manufactured
goods — which accounted for 71 percent of all sales abroad — declined in
December by 2.3 percent from the previous month, to $129.8 million.
Last year was a good year for state manufacturers doing business abroad and,
consequently, factory jobs tied to exports. For all of 2004, exports of
Maine goods surged by 16.2 percent to $1.9 billion, the best showing since
state exports data was first recorded in 1987.
Exports of non-manufactured goods went down 12.9 percent in December to
$53.1 million, also adjusted for seasonal variation.
The state’s overall export performance in 2004 translates to an annual
growth rate in foreign sales of 10.8, about the same gain as in 2003. As a
result, Maine ranked 33rd among the 50 states in export growth.
2005 outlook
What is the global economic outlook for 2005, which will determine
international trade and ultimately the demand for goods made in New
Hampshire? Forward-looking indicators signal that the international economic
outlook is expected to improve over the next three quarters.
The Organization for Economic Cooperation and Development (OECD), a
highly-respected Paris-based think-tank whose members include the world’s 30
richest countries, reported this month that the group’s composite leading
economic indicator shows improved performance in its recent reading. More
important, the indicator’s annual growth rate – designed to provide early
signals of changing directions in global economic activity between
expansions and slowdowns – accelerated for a second month in a row.
These new numbers confirm the general view that the global economic
expansion will continue in 2005.
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