March 2007

Real Texas exports expanded at a moderate pace in fourth quarter 2006, rising 2.8 percent. The increase marked the fifth successive quarter of export growth. In 2006, real exports were up a robust 16.1 percent.

Texas export growth varied across Texas’ major trading partners (Chart 1). Exports to Texas’ largest trading partners, Mexico, Canada and China, which together account for over half of the state’s exports, fell 1.9 percent, 3.5 percent and 2 percent, respectively. On the plus side, exports to Latin America (excluding Mexico), Asia (excluding China) and the European Union increased strongly—by 20.6 percent, 4 percent and 8.9 percent, respectively—more than offsetting losses from Texas’ other trade partners.

Chart 1

The fourth-quarter rise in Texas exports was spurred by fairly broad-based growth across Texas’ leading exported commodities. Transportation exports rose a robust 19.6 percent in the fourth quarter, while industrial machinery and chemical exports increased a more modest 1.6 percent and 2.3 percent (Chart 2). Only computer and electronics exports edged down (1.4 percent) during the quarter; however, they rose 1.9 percent for the year. In 2006, the top ten Texas commodities exported (in terms of dollar value) were computer and electronic products, chemicals, nonelectrical 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 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 M. Assanie at 214-922-5191.