Latest trade indicator signals sustained momentum in second quarter

May 15, 2017

The WTO’s latest World Trade Outlook Indicator (WTOI) suggests that global trade will continue to expand moderately in the second quarter of 2017. The latest reading of 102.2 is the highest since May 2011, but strength in the overall index is tempered by weakness in certain component indices.

The WTOI is a leading indicator of world trade, designed to provide "real time" information on the trajectory of merchandise trade ahead of trade volume statistics. Combining a variety of trade-related measures, the WTOI provides an early signal of the current direction of world trade and where it is likely to go in the near future.  A reading of 100 indicates trade growth in line with medium-term trends, while readings greater or less than 100 suggest above or below trend growth.

The main components of the WTOI, including export orders, container shipping and air freight, recorded strong gains in recent months, signalling above-trend growth in merchandise trade volumes for the second quarter. However, the upward trend is balanced by weak demand for automotive products, electronics and agriculture raw materials.

This has been excerpted from a 15 May 2017 news item by the World Trade Organization and is available in its entirety at: https://www.wto.org/english/news_e/news17_e/wtoi_15may17_e.htm


Topic(s): 
Canadian Economy & Politics
Information Source: 
Canadian News Channel
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