Reasons for U.S. Export Growth
Exports surged 19% year-on-year in the second quarter of 2008 and helped boost GDP growth to 3.3%. Though many think the US has become more competitive, higher exports actually reflect the higher prices of exported food and mineral fuels. Food and beverages accounted for 8.4% of the total goods exports, but because of the increase in prices during the second quarter they made up a staggering 18% of total export growth. Similarly, industrial products were driven up by the increase in refined fuel products.
Snapshot asks, if the commodity bubble has burst and rising commodity prices are driving GDP, what does that imply for third quarter growth?
UBS - Global Economic Perspectives
Wall Street Journal - U.S. Revises GDP Growth Higher