Trade-weighted exchange rates constructed for the aggregate U.S. economy, such as those published by the Board of Governors, cannot always capture the changes in industry competitive conditions associated with movements in specific bilateral exchange rates. Exchange rates constructed using information on industry-specific trade partners are better suited for this task. We present industry-specific exchange rates constructed for U.S. manufacturing and non-manufacturing industries in two formats, spreadsheets and charts.
We also provide data files on the export, import, and imported input exposures for each U.S. industry. These exposures are defined as exports relative to shipments, imports relative to consumption, and imported input use relative to total production costs. These data show the trade orientation of each U.S. industry, and how this orientation is evolving over time.
The traded-weighted value of the dollar peaked in early 2002 for most industries. Over the next six years, through 2008Q2, the dollar value declined substantially across U.S. industries -- over 20 percent against import-partners and about 25 percent relative to export partners. Over the recent period of financial turmoil, the dollar appreciated against many currencies so that the trade-weighted appreciation was nearly 15 percent by the end of 2008.
The dramatic changes in trade-weighted exchange rates are driven by the large swings observed in bilateral exchange rates. As one example, the dollar depreciated against the euro by more than 40 percent (in real terms) between 2002 and 2008Q2, and then appreciated by almost 20 percent in recent quarters as demand for dollars pulled up the currency value worldwide.
Industry patterns of import sources are more differentiated than industry patterns of export destinations. Since some country currencies, for example the Chinese renmimbi, remained relatively stable against the dollar through the end of 2008, industries with more intensive trade with such countries experienced more stable real exchange rates.
