Companies across the world are pumping the brakes this year on shipments and new purchases from overseas.
Global trade volume only rose 0.1% in June compared to a year ago, according an analysis of government global trade data released Thursday by Panjiva, an analytics firm.
It’s the lowest monthly gain since 2009.
“We’ve have some pretty clear signs that global trade has slowed down,” says Chris Rogers, a research analyst at Panjiva.
The numbers come a day before the U.S. Census releases data on July U.S. trade.
American exports in June were down 5% from a year ago and its trade balance declined for the third straight month, Census data shows. Another region pulling down global trade is Latin America. Its total trade volume decreased in June too, Panjiva found.
The strong dollar remains a major headwind for American companies that sell computers, cars and other products overseas. A strong currency makes U.S. products more expensive — and less attractive — to foreign buyers.
China’s slowdown, weak growth in some developing countries and low demand remain persistent problems for trade too.
Not everyone is down on global trade. A recent survey by American Express and the Economist Intelligence Unit found that 66% of international firms believe trade with the U.S. will increase over the next few years.
However, one challenge on the horizon is Brexit, the U.K.’s decision to leave the European Union. It will force the U.K. to rewrite a litany of trade agreements and could cool down trade ties between the U.K. and some of its major trade partners in Europe. That would spell bad news for the global economy, which is already growing at a “fragile” pace, according to the IMF.
