U.S. exports grew in Q3, including in computer parts 

The U.S. economy grew at an annual rate of 3.1% in the third quarter, according to the final estimate of gross domestic product, out this morning from the Bureau of Economic Analysis. That 3.1% is an upward revision from the last estimate, meaning that economic growth actually sped up in July, August and September compared to the previous three months.

One driver of that growth: exports. They were up nearly 10% over the last quarter. So what are we selling that the rest of the world’s buying?

The U.S. exported more of what are called “capital goods” in the third quarter. These are things that help businesses make other things.

“Especially semiconductors and other ICT products — information communication technology — think computers and stuff,” said Emily Blanchard, an international economic policy expert and professor at Dartmouth College.

She pointed out that the computing industry is highly dependent on global trade. And while the U.S. does import a lot of computer parts, it exports them too.

“The components and the bits and the bobs and the machinery, this is all going in and out, almost like respiration, like breathing,” she said.

Blanchard said the increase in computer-related goods lines up with an increase in the export of computer-related services.

“You sell the machine, but you also sell the engineers who can, you know, fly over and help you set up the product or go and maintain the product,” she said.

This export growth might not be sustainable, said Eswar Prasad, a Cornell University trade policy professor. He said the U.S. economy is doing really well, but other countries are stumbling.

“When the rest of the world is in crummy shape, economically speaking, the reality is that they’re just not going to be able to buy much stuff or services from the U.S.,” he said.

Prasad said imports also increased in the third quarter, underscoring the U.S. economy’s growth. 

“Especially because a lot of this growth has been driven by consumer demand, we are buying a lot more stuff from the rest of the world,” he said.

Those imports could be going up, said Syracuse University economics professor Ryan Monarch, as both companies and consumers rush to buy things before anticipated tariffs from the incoming Donald Trump administration.

“Let’s get it on the boat … let’s make our orders,” he said. “Let’s buy our car now before we have to pay more for the parts, right?”

Monarch said if more U.S. tariffs are imposed, he expects other countries will impose tariffs on our exports too, making them more expensive. And that means they might buy less of what we’re selling in the future.