The word from the Panjiva research team: in May, global trade activity increased noticeably. Specifically, there was a 9% increase in the number of global manufacturers shipping to the U.S. market, as well as an 8% increase in the number of U.S. companies receiving waterborne shipments from global manufacturers.
The May data is a step in the right direction, but volatile financial markets in Europe and rising input costs in China warrant a conservative outlook when it comes to the sustainability of growth. Note:
- The percentage of significant manufacturers on the Panjiva Watch List halted its 10-month streak of declines, leveling at 17%.
- The percentage of significant buyers having done business with a Panjiva Watch List supplier in the preceding three months also leveled at 24%
- The number of waterborne shipments coming into the U.S. saw a robust 21% year-over-year increase in May, although year-over-year comparisons are misleading since, as we’ve pointed out previously, global trade was a mess this time last year.
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 May, there were 91,104 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 May, there were 78,762 significant buyers.
