State's exports down for quarter, up for year

Minnesota's manufactured exports dropped 2.9 percent in the fourth quarter of last year as the global economic slowdown tightened its grip, but the state still set an annual record in 2008 by exporting $17.3 billion in manufactured goods.

While Minnesota's export business increased 6.2 percent in 2008, that rate lagged the U.S. increase of 9.8 percent, according to a state report released Tuesday.

Canada was the No. 1 buyer of Minnesota goods in the fourth quarter, but purchases plummeted 15.4 percent in the final quarter to $1.05 billion.

On the plus side, exports to Mexico, Japan and the Philippines grew by double digits, according to the Minnesota Department of Employment and Economic Development. China, the United Kingdom and Belgium also increased their buying.

Transportation equipment exports were down sharply, a decline that Tony Lorusso, executive director of the Minnesota Trade Office, attributed to a drop in sales of small trucks and public transportation vehicles to Canada.

Fourth-quarter totals for major Minnesota export categories:

•Computers and electronic products, $1.1 billion, down less than 1 percent.

•Transportation equipment, $415 million, down 31.2 percent.

•Food products, $315 million, down 11.1 percent.

•Chemical sales, $235 million, down 16.7 percent.

•Paper products, $130 million, down 13.5 percent.