August 2007

Real Texas exports rebounded in second quarter 2007, rising 2.5 percent. The increase was a bit shy of offsetting the 3.3 percent dip in the first quarter—which was the first decline since third quarter 2005. Still, Texas exports are 6.4 percent above year-ago levels.

The second-quarter pickup in Texas export growth was relatively broad-based across Texas’ major trading partners (Chart 1). The two largest—Mexico and Canada—recorded increases of 4.9 and 5 percent, respectively. The state’s exports to Asia (excluding China) and China rose 4.7 percent and 2.2 percent, respectively, during the quarter. And over the past year, exports to these countries have increased at a strong pace of 15.3 percent and 21 percent, respectively. In the second quarter, Texas exports to Latin America fell 12.2 percent, while exports to the European Union dipped 1.4 percent.

Chart 1

Most major industries contributed to the increase in exports during the quarter (Chart 2). Only transportation equipment witnessed a decline during the quarter, with exports falling 12.6 percent. Texas exports of industrial machinery rose 11.5 percent and chemical exports 3.2 percent. Following two quarters of declines, exports of computers and electronics edged up 0.5 percent but remain below year-ago levels. So far this year, the top 10 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 D'Ann Petersen at 214-922-5190.