The inaugural Panjiva Sindex climbed 4.7% on a year earlier to reach $3.26 billion in June. The index combines Panjiva data for U.S. imports and exports of alcohol, tobacco and weapons, sectors that are often excluded from portfolios by SRI fund managers. The Panjiva Sindex will be updated on a monthly basis.

Alcoholic products – including wine, beer and spirits – accounted for 59.5% of the index in the past 12 months. Imports of alcohol jumped 11.4% in June, reversing three months of declines, resulting from a 19.1% climb in tequila shipments among others.

Weapons exports, which account for 19.2% of the index, fell 1.5% in June and 6.3% in the quarter. However, new deals signed recently by the Trump administration, as outlined in Panjiva research of July 12, will likely see this climb again from later this year.

Finally, the slowdown in the tobacco industry continued, with exports – which are admittedly seasonal – having fallen 8.0%. New FDA rules on nicotine content may require the industry to become even more innovative.

Chart segments U.S. imports and exports of alcohol, tobacco and weapons.  Source: Panjiva

As mentioned already the total index climbed 4.7% on a year earlier, though the second quarter overall fell 1.1% after a slow month in May for weapons exports. That lagged the broader 5.8% rise in total U.S. trade across all products in June, 6.6% for the quarter. The 12 month trailing trade deficit in the Sindex products, at $10.1 billion, represents the net American “purchase” of the products covered and was the highest since November 2016.

Chart aggregates U.S. imports and exports of alcohol, tobacco and weapons.  Source: Panjiva