The sinking dollar is fueling a booming export market in tractors, medical equipment, and electrical machinery, helping some US manufacturers overcome a falloff in domestic sales, reports the Washington Post. The trend may even help reduce the trade deficit: For 2007, US exports are projected to increase even more than the 12.7% they rose between 2005 and 2006.
Experts debate whether to credit the weak dollar or the rise in living standards in developing nations. Much of the growth comes from specialty products whose reputations are tied to US know-how. “In some of these fast-growing countries, firms don't want to buy their own stuff," said an executive at one Ohio manufacturer. "They don't trust it."