In 2010, President Obama set a goal of doubling exports in five years. Now it looks like we are not going to make it:
U.S. exports are on track to decline this year for the first time since the financial crisis, undermining a national push to boost shipments abroad. Through July, exports of goods and services were down 3.5% compared with the same period last year. New data released Tuesday by the Commerce Department showed that exports of U.S. goods sank a seasonally adjusted 3.2% in August to their lowest level in years.
But what is bad news for producers, is good news for consumers:
As unemployment has declined, American consumers have reasserted their dominant role in driving economic growth.
And with the Fed set to raise interest rates, it is likely that the dollar will get even stronger:
Fed Vice Chairman Stanley Fischer in August said it was “plausible to think that the rise in the dollar over the past year would restrain growth…through 2016 and perhaps into 2017.” If the Fed begins to raise short-term interest rates later this year, that could provide new fuel to push the dollar’s value even higher.