Minnesota's manufactured exports fell 17 percent to $3.7 billion during the third quarter of 2009 but are beginning to show signs of improvement, according to a new state report.

Exports to Canada, Minnesota's largest trading partner, were down about 24 percent to $988 million from the same quarter a year ago, while sales to China, Minnesota's second-largest partner, were flat from a year ago at $333 million, according to the report by the Minnesota Department of Employment and Economic Development (DEED).

Minnesota exports to Ireland fell 14 percent to $199 million, while exports to Mexico fell by 17 percent to $177 million. Exports to England fell 8 percent to $165 million; those to Germany fell 22 percent to $146 million, and exports to Belgium fell 21 percent to $128 million.

On the plus side, third-quarter exports to Japan grew 3 percent to $195 million, while sales to Korea and Australia each grew 7 percent to a respective $141 million and $112 million.

U.S. exports fell 21 percent from third quarter of 2008 to 2009. Utah and Wyoming were the only states showing an increase in manufactured-export sales in the quarter.

"After a record year last year, Minnesota manufacturers have been challenged in 2009 by an economic slowdown that has disrupted business worldwide," said DEED Commissioner Dan McElroy. "We are encouraged that our export markets are already showing signs of recovery in some parts of the world, particularly in Asia."

DEE DEPASS