Commerce Department data released last week shows that the U.S. economy reached a 3.3 percent growth trajectory in the second quarter of 2008, well above the 2.7 percent that Wall Street had predicted, and the fastest pace since the third quarter of 2007.

Leading the way for the tenth consecutive quarter was the export of U.S. goods and services. Aided by the lower dollar and the increasing number of U.S. trade agreements, exports surged 13.2 percent in second quarter 2008, while imports fell 7.6 percent. Both figures exceeded estimates.

Altogether, international trade accounted for 3.1 percent of the economy’s 3.3 percent growth, an acceleration from earlier quarters and the largest contribution since 1980.
While residential investment has declined for ten consecutive quarters, reducing GDP by an average of 0.96 percent a quarter over that stretch, exports have more than made up the gap, increasing GDP by an average of 1.08 percent per quarter over the same period.

Manufacturing and small businesses have been major beneficiaries of the exporting boom. Manufactured goods account for 62 percent of U.S. exports, while services represent 29 percent, and agricultural products represent five percent.

Small-business exporting is big business, with over 80 percent of U.S. exporters employing fewer than 5 workers, and more than 95 percent having fewer than 50 employees.