Salient to Investors:
American exporters are preparing for a further decline in demand from Europe. U.S. exports to the European Union dropped 4.8 percent in the year ended April, the worst 12-month performance since November 2009.
Predictions:
Bank of America expect weaker exports over the long-term, and the trade deficit to widen to all developing economies.
Gary Hufbauer of the Peterson Institute for International Economics expects U.S. exports to Europe to drop since it takes three to six months for goods to be shipped after an order is placed. Hufbauer says exporters will be also hit by the euro falling further.
Dean Maki at Barclays says a decline in exports to Europe is not large enough by itself to cause a sharp slowdown.
Read the full article at http://www.bloomberg.com/news/2012-06-18/europe-crisis-imperils-u-s-sales-from-chemicals-to-pcs-economy.html