November 2006

Inflation adjusted Texas exports grew at a healthy pace in third quarter 2006, rising 3.6 percent. The increase marked the fourth successive quarter of export growth. When compared with a year ago, real exports are up a solid 15.1 percent.

The third-quarter rise in Texas exports was uneven across Texas’ major trading partners (Chart 1). Exports to Texas’ largest trading partners, Mexico and Canada, which together account for over half of the state’s exports, fell 4.5 percent and 0.2 percent, respectively. On a more positive note, Texas exports to China, Latin America (excluding Mexico), Asia (excluding China) and the European Union increased strongly by 7.7 percent, 8.4 percent, 11.4 percent and 11 percent, respectively, more than offsetting losses from Texas’ other trade partners.

Chart 1

Export growth during the third quarter was also mixed across Texas’ leading exported commodities. Transportation exports rose a robust 40.3 percent in the third quarter, while industrial machinery exports increased a more modest 9.4 percent (Chart 2). Chemical and computer and electronics exports edged down 1.7 percent and 0.2 percent, respectively, during the quarter; however, they are up 16.2 percent and 11.4 percent compared with third quarter 2005. So far this year, the top ten Texas commodities exported (in terms of dollar value) are computer and electronic products, chemicals, non-electrical machinery, transportation equipment, petroleum and coal products, electrical equipment, primary metals, fabricated metals, food and kindred products and plastics and rubber products.

Chart 2

Notes All data are 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 M. Assanie at 214-922-5191.