Export Grants

Posts Tagged ‘export growth’

The US economy got a jump in the first quarter of the year posting a 3.2% annualized increase over the year before fueled by the economies continued recovery. However this is slower then the 5.2% shown the year before partly because of lower government spending and a fall in exports. Exports only grew by 5.8% in the first three months of the year which is far less then the 22.8% that was experiences at the end of last year. This may not prove to be good for Obama’s initiative to revitalize the nations Export growth as he plans to double the exports over the next 5 years.

Strong spending by consumers helped to offset these drops with a 4% increase in spending has been reported versus the year before. Obama recently said:

We are moving in the right direction and this is an important milepost on the road to recovery.

U.S. Manufactuers export orders rose to their highest level in nearly a quarter century according to the Institute of Supply Management (ISM). This was the ninth straigh month of growth for the export which is an sign that industrial activity is rising significantly since before the recession. While exports have been championed by the current administration as the key to the countries job growth the numbers do not indicate it.

Despite this massive increase in export growth, factory jobs hare still rising but have slowed dropped in their pace. The products that fueled the exports are capital intensive activities. Most products are built using robotics in the place of workers and other sophisticated machines. While these big ticket items help the economy they are not big employment generators. The index currently sits at 61.5 and anything over 50 is considered growth. Most of this growth has been to export orders in Canada and China.