Surge in exports improves U.S. trade balance, group says

“In contrast, manufactured goods imports were up just 3 percent,” said Frank Vargo, NAM vice president of international economic affairs, in a news release.

Vargo noted that the U.S. trade deficit in manufactured goods was $104 billion for the first three months of 2008, compared to $119 billion for the same part of 2007.

“Exports are the strongest part of the U.S. economy, and over the last four quarters, they accounted for close to half of all U.S. economic growth,” Vargo said.

“That is why we have to do everything we can to help keep those exports growing, including implementing the remaining trade agreements with Colombia, Korea and Panama that will further open markets to American-made goods and services.”

Vargo added that 55 percent of the trade deficit in goods and services is now in petroleum, underscoring the need to move quickly on a comprehensive domestic energy policy.

Driving the economy

“U.S. exports have kept the economy out of recession during the most recent two quarters,” said NAM Chief Economist David Huether, in a separate news release.

“Capital goods exports – including automotive vehicles and parts – account for more than a third of total U.S. exports and nearly half of manufactured exports.”

And those numbers are expected to grow.

Huether cited a recent survey of NAM members, which showed that participating companies expect exporting to account for at least one-fourth of their sales growth this year.

Companies anticipating that growth also have indicated that they expect to invest, grow and add staff members, Huether said.