Global Export Growth Slows In October As Shipping Costs Rise; India Records Six-Month High: S&P Global

New Delhi, Nov 9 (KNN) Global goods export growth moderated in October as rising energy, fuel and transportation costs put pressure on export demand, although India recorded a six-month high in manufacturing export orders, according to a report by S&P Global.

The seasonally adjusted Global Manufacturing PMI New Export Orders Index declined to 50.9 in October from 51.6 in September. The index remained above the 50-point threshold, indicating expansion, but recorded its lowest reading in the current growth phase, ANI reported.

The report estimated that global merchandise trade was growing at an annual rate of around 6 per cent at the beginning of the fourth quarter of 2026. It said export growth continued across manufacturing and services, as well as developed and emerging economies.

The eurozone overtook Asia as the strongest-performing region in October, supported by higher export orders from Austria and Germany. Germany recorded its second-fastest expansion in new export orders in just over five years, with defence and infrastructure spending supporting manufacturing activity.

India and Indonesia also reported growth in export orders. India's manufacturing new export orders rose to a six-month high, while Indonesia recorded a record expansion in goods export orders.

In contrast, export order growth slowed in Japan, Taiwan and South Korea amid higher prices. Japan and Taiwan recorded their slowest growth in seven and nine months, respectively, while South Korea saw marginal expansion.

Export orders increased across all eight broad sectors tracked by the PMI survey for the first time since February 2022. Telecommunications services led the growth, while healthcare trade expanded at a faster pace than technology-related trade.

Higher shipping and fuel costs contributed to rising input prices and weakened export demand. "Shipping costs clearly played a major role in the increase in input prices," the report said.

S&P Global said the increase in selling prices in October was the strongest since 2022, reflecting higher manufacturing input costs. It also noted that business optimism about output growth over the next 12 months had declined, with rising prices weighing on sentiment.

(KNN Bureau)