California’s Export Trade Is a Y-O-Y Near Match

Despite the economic drag from recurring outbreaks of old and new strains of the coronavirus, and ongoing trade disputes, California’s export trade in December 2020 nearly matched levels in December 2019, according to Beacon Economics’ analysis of the latest U.S. trade statistics recently released by the U.S. Census Bureau. California businesses shipped $14.019 billion in merchandise abroad in December, a nominal decline of less than one-tenth of 1% from the $14.033 billion in exports the state recorded in December 2019. By comparison, the value of all U.S. merchandise exports dipped by 2.4% from one year earlier, while exports from Texas were off by 10.7%.

“Given how U.S. exports have been lagging amid the ongoing global fight against the pandemic, this is good news for the local economy,” said Christopher Thornberg, founding partner of Beacon Economics. “The data reflects how many of the things the state produces for the world, such as food and technology products, remain in high demand. There are still clearly pain points, but these numbers are encouraging.”

December shipments of manufactured products by California firms were off by 5.4%, falling to $8.618 billion from $9.108 billion one year earlier. However, exports of non-manufactured goods (chiefly the state’s agricultural products and raw materials) were up by 7.7% to $1.962 billion from $1.821 billion. The state’s export numbers were also aided by a strong 10.8% increase in re-exports, which rose to $3.439 billion from $3.104 billion.

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