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Recent economic statistics have
confirmed what Federal Reserve Chairman Alan Greenspan has termed a "soft
patch" in the U.S. economy in the second quarter.
Slower economic growth in the rest of the world results in weaker demand for
New Hampshire and Maine goods, and is causing exports to slow in both
states.
Following a 14.6 percent jump in May, shipments abroad from New Hampshire
companies declined $25.3 million, or 12.7 percent, in June from the previous
month to $174.3 million.
Despite June’s pullback, foreign sales remained at relatively high levels.
Compared with last year, exporters from the Granite State sold $22.1
million, or 14.5 percent, more goods than in June 2003.
June’s decline in overall state exports was broad-based. Exports of
manufactured goods dropped 7.3 percent from the previous month, to $147
million.
Manufactured goods accounted for 84.3 percent of all state exports in June.
Compared with June of last year, this month’s shipments abroad from New
Hampshire factories were $22.6 million higher.
Exports of non-manufactured goods totaled $27.3 million in June, a 33.4
percent decrease from May. This group of shipments abroad consists of
agricultural goods, mining products, and re-exports.
In Maine, international sales from that state’s companies plunged by 10.9
percent in June, after a 5.5 percent rise in May.
The $22.3 million decline from the previous month brought Maine sales abroad
to $181.6 million in June.
However, compared with last year, Maine exports also showed a solid recovery
in foreigners’ demand for locally made goods.
In June of this year, exporters shipped abroad $11.4 million, or 6.7
percent, more goods than in June of 2003.
All major exporting industries felt a global decline in demand for
made-in-Maine products. Exports of manufactured goods dropped 11.2 percent
in June from the previous month, to $133.5 million.
Manufactured goods exports accounted for 73.5 percent of all state exports
in June. Compared with last year, shipments abroad from state factories
still were $8.4 million higher than in June of 2003. Consequently, on an
annual basis, Maine’s manufacturers are seeing their international sales
recovering from last year’s low levels.
Exports of non-manufactured goods declined $5.4 million, or 10.1 percent, in
June to $48.1 million, adjusted for seasonal variation.
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New jobs creation, especially in the manufacturing sector, depends to a
great extent on the global economy as on average one in every five factory
worker jobs is tied to foreign shipments.
An international survey conducted by the Munich-based Ifo Institute for
Economic Research in co-operation with the International Chamber of Commerce
in Paris has indicated a slowing in global economic activity during the
summer. Ifo’s worldwide quarterly index of current economic conditions —
based on responses from 1,178 business experts in 89 countries — edged up 2
percent in the second quarter after a big 22 percent surge in the first
quarter of 2004, and a 13 percent jump in the last quarter of 2003.
The nation’s exports, adjusted for seasonal variation, dropped 6.5 percent
in June to $64.2 billion from May’s all-time record level of $68.7 billion
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