The word from the Panjiva research team: global trade continues on a slow recovery path.  Specifically, there was a 3% increase in the number of global manufacturers shipping to the U.S. market, as well as a 2% increase in the number of U.S. companies receiving waterborne shipments from global manufacturers.

The April data confirms that global trade activity is heading in the right direction, but at a deliberate pace.  Positive indicators:

• The percentage of significant manufacturers on the Panjiva Watch List fell to its lowest level yet, down 1% from March to 17% this month.
• The percentage of significant buyers having done business with a Panjiva Watch List supplier in the preceding three months declined slightly from 25% to 24%.
• The number of waterborne shipments coming into the U.S. saw a healthy 11% year-over-year increase in April.

Again, year-over-year comparisons are a bit misleading, since global trade was a mess this time last year.  Also, it’s worth noting that the recent turmoil in global financial markets could jeopardize global trade’s nascent recovery.

Methodological notes:

• Manufacturers that have suffered a 50% or greater decline in volume shipped to American customers in the most recent three month period, versus the same period a year ago, are on the Panjiva Watch List.
• “Significant manufacturers” are companies that have sent 10 or more shipments to American customers within the last year. As of the end of April, there were 89,501 significant manufacturers.
• “Significant buyers” are U.S. companies that have received 10 or more shipments from overseas manufacturers within the last year. As of the end of April, there were 77,155 significant buyers.