Concerns about slowing growth in China and falling commodity prices, which afflicted global financial markets early this year and thus likely weighed on demand, appear to have eased somewhat. Indicators suggest that foreign economies are growing, if still at only a moderate pace, and foreign financial markets have recovered and stabilized.
That said, net exports have been a drag on U.S. GDP growth over the past year and are likely to continue to weigh on growth over the medium term.