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.
Related: Trade turmoil: $1.3 trillion at stake in Brexit
breakup
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.
Surce: CNNMoney