European forwarders see flattening of growth

The European Freight Forwarding sector saw modest growth in September, according to Danske Bank’s Freight Forwarding Index, which was up to 53, from 46 in August.


Eurozone


European forwarders see flattening of growth

The European Freight Forwarding sector saw modest growth in September, according to Danske Bank’s Freight Forwarding Index, which was up to 53, from 46 in August. At just above 50, the index indicates a slight expansion in the volumes of goods handled by freight forwarders. The index, which surveys freight forwarding companies, measures variations in actual volumes against volumes handled two months ago, as well as expectations of volumes of goods over the next two months. The index uses a scale between 0 and 100, with values below 50 indicating a contraction in demand. In July, participants had anticipated that the index would reach 57 for September. When asked about the development of volumes over the next two months, survey participants’ expectations declined to 54 for November, from 56 for October, with forwarders expecting reasonably flat volumes in the coming months. As economic recovery is becoming more uncertain, Eurozone manufacturing PMI hit a 25-month low in September and trade growth forecasts for 2011 have been revised downwards; therefore the outlook for the forwarding sector is becoming less positive.