As Wolf Street’s Wolf Richter adds, this isn’t stagnation or sluggish growth. This is the steepest and longest decline in world trade since the Financial Crisis.
Unless a miracle happened in June, and miracles are becoming exceedingly scarce in this sector, world trade will have experienced its first back-to-back quarterly contraction since 2009.
Both of the measures above track import and export volumes.
As volumes have been skidding, new shipping capacity has been bursting on the scene in what has become a brutal fight for market share.
Hence pricing per unit, in US dollars, has plunged 14% since May 2014, and nearly 20% since the peak in March 2011.
For the months of March, April, and May, the unit price index has hit levels not seen since mid-2009.
World trade isn’t down for just one month, or just one region. It wasn’t bad weather or an election somewhere or whatever.
The swoon has now lasted five months.
In addition, the CPB decorated its report with sharp downward revisions of the prior months.
And it isn’t limited to just one region.
The report explains:
The decline was widespread, import and export volumes decreasing in most regions and countries, both advanced and emerging.
Import and export growth turned heavily negative in Japan. Among emerging economies, Central and Eastern Europe was one of the worst performers.
Given these trends, the crummy performance of our heavily internationalized revenue-challenged corporate heroes is starting to make sense: it’s tough out there.
But not just in the rest of the world.
At first we thought it might have been a blip, a short-term thing.
This article is brought to you courtesy of Tyler Durden From Zero Hedge.