Port traffic declines

Total shipments through the Port of Los Angeles fell 4 percent in October, but the really bad news is that outbound shipments dropped 8.2 percent from a year earlier. At the Port of Long Beach, inbound cargo fell 9.5 percent and outbound was down 8.5 percent. Total shipments were off 7.7 percent. Export activity has been one of the few bright spots for the U.S. and Socal economies, but those October numbers suggest that a global downturn is quickly taking hold (exports out of both ports had been sharply higher for much of the year). Already, Germany, Italy and Japan are officially in recession. From Briefing.com:

Strong export growth was a major reason the U.S. did not enter recession until the fourth quarter of this year. Net exports added 0.7% to real GDP growth in 2005, 1.0% in 2006, 1.0% in 2007, and an average of 1.0% per quarter so far in 2008 (yes, the numbers happen to come out exactly the same). This boost to growth will now disappear. Not only is foreign demand going to weaken, but the rebound in the dollar will significantly lessen the relative value of U.S. goods. The net export component of GDP will soon turn negative, taking away what had been a very strong boost to the U.S. economy.