Following a solid 2008, district manufactured exports expected to slow in 2009

While the district economy slowed in 2008, manufactured exports continued to grow. Manufactured exports increased in all district states at or above 11-year historical average growth rates. However, growth in exports slowed during the last few months of 2008, and growth is likely to drop in 2009. Growth to the district's primary export destination, Canada, was higher than historical averages in all states except South Dakota, where growth decreased by 4%, primarily due to decreases in exports of food and kindred products. Exports of machinery, the district's largest export industry, account for just over 25% of manufactured exports. Despite the slowing US economy during 2008, manufactured exports continued to grow in part due to global economic growth and a weaker dollar, which made US manufactured exports less expensive in other countries. However, global growth is expected to be flat in 2009, and exchange rates have started the year unfavorably for exports.