September 26/04

New Hampshire’s exporters are back on the road to growth. After having turned down by 11.8 percent in June, foreign sales resumed their expansion in July, advancing by 8.8 percent.

The $15.4 million monthly rise from the previous month brought sales abroad to the $190.9 million mark in July, the second highest level in three years.

Compared with the same month a year ago, the latest snapshot in state exports shows robust gains in foreigners’ appetite for New Hampshire goods. In July of this year, exporters shipped abroad $36 million, or 23.3 percent, more goods than in July of 2003.

Manufactured goods accounted for 86.6 percent of all state exports in July.

More important, compared with last year, foreign sales from New Hampshire factories were $37.1 million, or an exceptional 29 percent, higher than in July of 2003.

An analysis of data confirms a positive trend that started in January 2001 when manufacturing exports — driven by slowly recovering foreign demand — began to mend. State manufactures selling abroad have made up most of the ground they lost in the global downturn during 2001-02.

Because one in every four local factory jobs is generated by exports, the export recovery implies gains in manufacturing employment with spillover effects on all other industries in the Granite State, especially transportation, business services and retail trade.

Exports of non-manufactured goods totaled $25.6 million in July, a 4.5 percent decrease from June. This group of shipments abroad consists of agricultural goods, mining products, and re-exports.

At the national level, exports of goods advanced 4.3 percent in July, mainly reflecting strong gains in shipments of autos and auto parts, civilian aircraft and computers.

Looking at export growth, New Hampshire ranked 15th among the 50 states in the first seven months of this year.

Meanwhile, foreign sales from Maine’s companies fell 2 percent in July following a 10.8 percent decline in June.

The $3.7 million monthly decline from the previous month brought shipments abroad to $178 million in July. Despite the two consecutive monthly drops, foreign sales remained at relatively high levels.

In July of this year, Maine exporters sold abroad $7.2 million, or 4.2 percent, more goods than in July of 2003. Notably, Maine’s manufacturing sector continued to show signs of vigor in July as foreign shipments from local factories increased.

Exports of manufactured goods climbed 2.7 percent from the previous month to $137.8 million. Manufactured goods accounted for 77.4 percent of all state exports in July.

Exports of non-manufactured goods fell 15.4 percent in July from the month before. This volatile group of shipments abroad consists of agricultural goods, mining products, and re-exports.

According to a recent business survey, conducted 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 national index of new export orders continued to show growth in August for the 21st consecutive month, although at a slower pace than in July.

Of the 76 percent of respondents of the largest U.S. corporations who sell products abroad, 19 percent reported greater incoming orders for exporting goods, 72 percent reported no change and only 9 percent reported smaller orders from July’s levels.

N.H. Exports continue to expand