Manufacturing and retail activity fall sharply as slowdown in global trade extends to third consecutive quarter

SAN FRANCISCO–(BUSINESS WIRE)–Data from Tradeshift, the global network for digital commerce, reveals that business activity in the retail, manufacturing, transportation and logistics sectors fell sharply in the third quarter, with volume transactions between buyers and suppliers having generally slowed down for the third consecutive quarter.

According to the Tradeshift Global Trade Health Index, global supply chain activity fell another 5 points in the third quarter compared to the baseline. New orders, in particular, are drying up at an accelerating rate as inflationary costs and global uncertainty rise. Global order volumes fell another 7 points below expected levels in the third quarter after falling 6 points in the previous quarter, the largest six-month drop since the peak of the pandemic.

Manufacturing fell 11 points below the expected range in the third quarter. Retail supply chain activity was 9 points below baseline, the slowest growth in 18 months. The drop in demand in these sectors also leads to a drop in demand in the transport and logistics sector. Activity across the sector was 8 points below expectations in the third quarter, the second consecutive quarter of declining growth.

“The good news is that supply chain bottlenecks are easing and shipping costs are coming down,” said Christian Lanng, CEO of Tradeshift. “The bad news is that this is largely the result of falling demand, and this trend now appears to be accelerating. equally treacherous pressure in the other direction.If suppliers run into financial difficulties and begin to retreat, we could begin to see a repeat of the problems that supply chains have faced during the pandemic.

Tradeshift’s analysis places Europe at the epicenter of the latest downturn. Eurozone supply chain activity fell another 6 points in the third quarter as the energy crisis triggered by Russia’s invasion of Ukraine dented consumer spending and exerted significant pressure on supply chain costs. In the United Kingdom, which faces similar challenges, commercial activity fell another 5 points in the third quarter.

A different picture is, however, emerging in the United States. The dynamic is slowing down, but at a much gentler pace than elsewhere in the world. Total trading volumes were tracked just 2 points below the expected level in Q3. In China, local supply chain activity also grew at a relatively healthy pace in the third quarter, just 1 point below the expected range. However, activity levels in Chinese supply chains have been very erratic since the start of the year, and this is unlikely to change as long as the lockdown policy remains in place.

“Supply chains in the United States appear to have stabilized,” Lanng said. “As long as consumers continue to spend, they might even start to see a benefit from lower operating costs. Europe faces a much tougher path. The energy crisis comes down to a failure to maintain the “balance between access, sustainability and security of supply. As organizations carefully consider the resilience of their supply chains, maintaining this balance must be a priority.”

About the Tradeshift Global Trade Health Index

Tradeshift’s Index of Global Trade Health analyzes business-to-business transaction volumes (orders processed by buyers and invoices processed by suppliers) submitted through the Tradeshift platform to provide insight into how external events can impact the business-to-business commerce in a variety of different regions and sectors around the world.

About Tradeshift

Tradeshift is the cloud-based supply chain platform transforming the way B2B buyers and sellers connect, transact and trade. We are a leader in e-invoicing and endpoint automation, providing comprehensive international compliance in over 50 countries, including China. We are also an innovator in B2B marketplaces and integrated fintech services that bring value, opportunity and growth to any business that joins the network. Based in San Francisco, Tradeshift’s vision is to connect every business in the world, creating economic opportunity for everyone. Today, the Tradeshift platform is home to a rapidly growing community of buyers and sellers operating in over 190 countries. Find out more at:

Forward-looking statements

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