Long Term Perspective
Export demand was sluggish in 1998 and 1999 as foreign economies in the throes of recession tried to get back on their feet. Export growth increased at a healthy clip in 2000 even as the foreign exchange value of the dollar appreciated.

Short Term Perspective
Except for a minor pick-up in January and February 2001, export growth has moderated significantly since its peak in mid-2000 and in fact accelerated its pace of decline. This slowdown corresponds quite nicely with the weakness in industrial production over the same period. U.S. manufacturers are finding softer demand from abroad at the same time that demand is moderating domestically. A strong dollar is not particularly conducive to trade, even though it has declined in the past few months.

Real GDP vs. Final Sales   •   Real Consumer Spending vs. Real Income   •   Debt Burden vs. Savings Rate

Business Fixed Investment vs. Net Cash Flow   •   New Orders   •   Housing Starts vs. Mortgage Rates

Merchandise Exports vs. Trade Weighted Dollar   •   Merchandise Imports vs. Trade Weighted Dollar