A global Dry up

18 January 2008 By Ian Campbell

The Baltic Dry Index, which has been a good guide to global economic activity, has dropped by 25% in a week. It s a sign that financial woes are hitting the real economy. The odds of a global economic decline and the end of the commodity supercycle are rising.

This content is for Subscribers only

Context News

The Londonbased Baltic Dry Index, which measures freight rates for global dry commodities, suffered on Thursday the sharpest ever oneday fall, of 6.4%, in its 22year history, and has fallen by a quarter in one week.

In the United States, the Philadelphia Federal Reserve Bank's regional manufacturing index fell to to 20.9 in January, its lowest reading since October 2001, when the US economy was battling recession.

The commodity price index produced by The Economist shows all items rising in price by 26.6% in the past year in US dollar terms, food by 48% and the (West Texas) crude oil price by 79%.

Email a friend

Please complete the form below.

Required fields *