Trade-weighted exchange rates are used to compare the value of the U.S. dollar against the currencies of major trading partners, as in the Federal Reserve Board’s Price-Adjusted Broad Dollar Index. We construct import and export-weighted exchange rates for specific U.S. manufacturing and non-manufacturing industries to capture changes in the competitive conditions for 30 industries in the U.S. economy.
Constructed import and export-weighted exchange rates for specific U.S. manufacturing and non-manufacturing industries are provided below. These exchange rates are defined as foreign currency per unit of U.S. dollar, so that an increase (decrease) is a dollar appreciation (depreciation). All indices are presented in real terms. Charts by industry for the period from 1973Q1 through 2010Q4 are in the drop-down menus below. Historical data is organized in a master spreadsheet. We also provide data files on the export, import, and imported input exposures for each U.S. industry with these respective terms defined as exports relative to shipments, imports relative to consumption, and imported input use relative to total production costs. These data show how the trade orientation of each U.S. industry has evolved over time.
Across those industries with the highest shares of imports in domestic consumption, the dollar depreciation ranged from 3.8 to 4.4 percent in Q4 2010. For all 30 import industries that are tracked, an average dollar depreciation of 3.8 percent for the quarter compares with a 2.4 percent depreciation over the past year.
Across those industries with the highest shares of exports in total shipments, dollar depreciation ranged from 3.8 to 4.1 percent. During Q4 2010, the average depreciation across all industries was also 3.8 percent, which compares with a 2.3 percent depreciation, on average, over the past year.
Exchange rates for two industries with high trade orientation contrasted with a single aggregate exchange rate show that an aggregate measure provides a good indicator, but real exchange rates have evolved to differing degrees for exporters and importers by industry.
Most import-weighted exchange rates for manufacturing industries have returned to pre-crisis levels or registered a small depreciation, while those for most non-manufacturing industries are still somewhat higher. On the export side, exchange rates for most manufacturing and non-manufacturing industries have retraced almost all of the appreciation from the crisis.