US trade rebound contrasts with sluggish global demand

World trade data from Tradeshift’s Q2 Index of Global Trade Health shows transaction volumes across US supply chains grew at their fastest pace in more than two years as domestic trade activity rebounded following a recent slump.

Tradeshift’s analysis of purchase orders and invoice patterns across its cloud-based network reveals a more uneven global trend. Total transaction volumes across the Tradeshift platform grew at 4 points below the expected range, a modest improvement on the 5-point deficit in Q1, but nonetheless evidence of a trading environment that remains sluggish. 

Globally, order volumes stayed flat at 2 points below the expected range in Q2. Key sectors, including transport and logistics, and manufacturing, also appear to be settling into a lower rhythm after consecutive quarters of steeply declining activity. 

Invoice volumes fell sharply in Q2, suggesting that supply chains are having to adjust to the prolonged drop in orders. 

Additional findings from the Q2 Index include: 

• • Waning demand for manufactured goods has taken the shine off China’s grand reopening. Transaction volumes rose to 1 point above expectation in Q2, but progress is more steady than spectacular. 
  • Activity across the Eurozone recovered slightly in Q2 after a very shaky start to the year. Trade activity across the region rose 3 points below the expected range, but the outlook remains volatile.
  • UK order volumes rebounded sharply, but overall activity levels remain lackluster. Transaction volumes grew at 5 points below the expected level in Q2 and are struggling to find another gear. 

Read the full report for insights on how you can build resilience across your supply chain.