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Oregon Exports Surge in Q2
Thursday, August 13, 2009 11:00 AM


(Source: The Oregonian)trackingBy Richard Read, The Oregonian, Portland, Ore.

Aug. 13--Oregon exports, which had plummeted like a ski jumper since last September, have taken a sudden leap, raising hopes for a glide out of the recession.

A 6 percent increase in the state's second-quarter exports reported today outdid a 2 percent rise nationally. Increased purchases by foreign countries could be lifting trade-dependent Oregon out of the economic doldrums, economists say.

"I think it's indicative that we're seeing the turnaround here," said Bill Conerly, a Lake Oswego economic consultant. He sees other positive developments, such as declining initial-unemployment claims and increasing Boeing aircraft sales.

It's possible the rise in exports is a blip instead of a trend. Oregon's foreign sales jumped from $3.2 billion in this year's first quarter to $3.4 billion in the second quarter ended June 30.

That's nowhere near the $5.2 billion sold abroad during last year's third quarter. Oregon's second-quarter exports are still down by a third from the same period last year.

"It's not much of a bounce back, but it arrests the free-fall feeling," said Tom Potiowsky, state government's chief economist. "The recession is starting to bottom out. We're seeing an end to this thing, and China's economy has marginally picked up."

Along the West Coast, trade graphs showed the same ski-jump pattern. California exports bounced up during the second quarter, by 4 percent, after an extended descent. Mexico, Canada and China led the turnaround, which was also fueled by high-tech sales.

Washington's foreign sales also grew during the second quarter, but only by 1 percent, held back by declining agricultural exports.

For Oregon, mainland China's purchases increased 18 percent during the second quarter, reaching $665 million. High-tech sales to China jumped 25 percent from the first quarter, with exports of chemicals, machinery and metals growing as well.

Oregon's second-quarter sales to China jumped 9 percent from the same period last year. The strong increases occurred even as U.S. politicians accused Beijing of artificially depressing Chinese currency, making U.S. goods more expensive in China.

Malaysia also spent more on Oregon goods during the second quarter, with high-tech products leading sales. Those purchases could be Intel wafers for test and assembly, as the chip giant struggles back from the first quarter -- its worst sales period since 2003.

Oregon's high-tech exports jumped 31 percent during the second quarter, according to WiserTrade, a Massachusetts organization that crunches U.S. data.

The reports don't break out specific companies. But in Hillsboro, TriQuint Semiconductor Inc. sales of specialized iPhone modules are picking up to China, as are ON Semiconductor's exports of analog chip components made in Gresham.

Not all Oregon industries showed gains. Chemical exports dropped 38 percent to $176 million. Transportation-equipment sales fell 26 percent to $155 million. Agriculture slid 6 percent during the second quarter, to $460 million.

Some countries slashed purchases. Canada, Oregon's second biggest customer, spent $449 million on goods from the state during the second quarter, down 15 percent. Japan held onto its yen, spending 18 percent less at $310 million.

As usual, the trade stats produced various surprises and oddities.

Oregon's exports to Costa Rica, for example, continued explosive growth, driven by high tech. Sales to the Philippines tanked, also because of high tech.

And exports to Swaziland, sporadic in the best of times, remained flat at zero.

Richard Read, richread@aol.com

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Copyright (c) 2009, The Oregonian, Portland, Ore.

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