November 2007

Real Texas exports picked up in third quarter 2007, rising a solid 5.5 percent following growth of 2.4 percent in the second quarter. The increase helped offset the 3.3 percent dip recorded in the first quarter, and Texas exports are 7.5 percent above last year's levels.

The third-quarter rise in Texas exports was broad-based across the state's major trading partners (Chart 1). Mexico—Texas' largest trade partner—recorded an increase of 3.2 percent, while exports to Asia (excluding China) rose 2.2 percent. A weaker U.S. dollar spurred the state's exports to Canada, Latin America (excluding Mexico) and the European Union, which climbed sharply, rising 7.2 percent, 9.5 percent and 12 percent, respectively, during the quarter. Exports to China dipped 2.6 percent in the third quarter but are up a strong 11.8 percent from year-ago levels.

Chart 1

Texas export growth varied across major industries (Chart 2). Texas exports of industrial machinery rose 9.9 percent, and transport equipment exports increased 7.2 percent. In contrast, exports of computer and electronic products and chemicals were relatively flat during the third quarter, edging down 0.1 percent and 0.8 percent, respectively. So far this year, the top ten Texas commodities exported (in terms of dollar value) are chemicals, computer and electronic products, nonelectrical machinery, transportation equipment, petroleum and coal products, electrical equipment, primary metals, fabricated metals, agricultural products and food and kindred products.

Chart 2

Notes All data used in this analysis have been seasonally adjusted. Growth rates are not annualized unless otherwise noted. The source for quarterly export data is the World Institute for Strategic Economic Research (WISERTrade). For additional information or questions, please contact Laila Assanie at 214-922-5191.