The Tradeshift
Index of Global
Trade Health

Q2 2022

The Tradeshift Index of Global Trade Health | Q2 2022

Inflation ismore thana passingphase

Data from Tradeshift’s Q1 Index showed the steepest
decline in quarterly activity since the beginning of thepandemic. In Q2 we saw more evidence of a looming
recession, with global transaction volumes droppingby a further 6 points against our forecast range.
What’s striking about this quarter’s Index is the nearuniform pattern of declining transaction volumes
across most of the world’s largest economies.
Supply chain activity in the Eurozone and the US
fell for the second quarter in a row, dropping by 5
and 4 points respectively. Activity in the UK also slid
a further five points against the forecast range.
The bad news doesn’t end there. Order volumes
on Tradeshift’s platform fell by a further 6 points
in Q2 against expectation, while invoice volumes
dropped by 7 points, the steepest decline inquarterly invoice traffic we have seen in over a
year. The figures suggest that the global economy
is in for a rough ride over the months to come.
In ordinary times, this sustained decline in global activity
would be the biggest economic story of the day. But it’sovershadowed by the spectre of inflation, with rates
hitting levels not seen in some economies for decades.
Analysis of pricing volatility on the Tradeshift platform
indicates that the average value of an invoice in 2022
is tracking 11% higher than last year’s average.
The current bout of inflation has several causes, anumber of them linked to the pandemic. Supplychain disruptions have persisted across the global
economy. Covid-19 cases in China and the impositionof lockdown restrictions continues to cause problems.

Our data shows supply chain activity across the region
sank a further 7 points below the expected rangein Q2. Russia’s invasion of Ukraine is adding furtherpressure, especially to energy and food prices.
Some of the current challenges facing supply chains
are transitory. It would be wrong however to ignore
the structural changes in the world economy that
could mean inflation remains a recurring problem.
The link between labour shortages and wage inflation
is a good example. The 1980s ushered in a golden
period for cheap labour as Eastern Europe andChina opened up to international markets and Baby
Boomers pursued their careers. This labour influx
kept inflation low and removed much of the incentive
for businesses to invest in automation, remaining
wedded to labour-intensive manual processes, manyof which remain a feature of the workplace today.
That cycle is ending, with an aging workforce anda younger generation asking harder questions
about the type of work they want to do. Businesses
are examining choke points in their supply
chain and realizing that chucking more bodies
at these problems is no longer an option.
According to one recent study, 78% of executives areplanning to invest in automation to mitigate the impactof future labour shortages. Long viewed primarily as away to reduce overheads, automation is fast becoming
a key component of long-term risk management andresilience planning across global supply chains.

p.2

Q3 2022
2021
The Tradeshift Index of Global Trade Health | Q2

Key findings
at a glance

1. Global transaction volumes fell for thesecond quarter in a row, sliding a further
6 points against the forecast range.
2. Transaction volumes in the Eurozone and the
UK both followed the global pattern, falling afurther 5 points below the expected range.

5. Order volumes fell for the second quarter in a row,
dropping 6 points compared to the baseline.
6. A lack of fresh orders is now trickling throughto suppliers. Invoice traffic fell by 7 points
in Q2, the steepest drop in a year.

3. US supply chain activity fared marginallybetter. Transaction volume growth
dropped by 4 points in Q2.

7. Orders might be tumbling, but costs haverisen sharply since the beginning of the year.
The average value of an invoice on Tradeshift
is 11% higher than the 2021 average.

4. China’s zero-Covid policy and regional
lockdowns contributed to another 7
point fall in transaction volumes.

8. With demand softening, activity across thetransport and logistics sector fell below the
expected range for the first time in a year.

p.4

The Tradeshift Index of Global Trade Health | Q2 2022

Volatility
snapshot
Cumulative activity growth between
buyers and suppliers on the Tradeshiftplatform since Q1 2020

p.6

The Tradeshift Index of Global Trade Health | Q2 2022

New and familiar challenges placethe ‘Roaring Twenties’ on holdAll signs are pointing down

Cumulative transaction volume growth(orders + invoices) indexed against pre-pandemic forecast

Cumulative growth in invoices and orders indexed against pre-pandemic levels
110

120

100
100
90
80
80

60

40
Q1'20

70

Q2'20

Q3'20

Global

Q4'20

Q1'21

US

Credit Suisse has called 2022 a ‘transition year.’ 1
According to our latest data, it could prove a painfultransition. Global transaction volumes continued
to lose momentum in Q2, dropping by a further 6
points against the expected range. Taken together
with the 7-point fall in Q1, this is the most significant
contraction we’ve seen across consecutive quarters.
Transaction volumes across the Eurozone had
dropped 14 points in Q1 as the combination of
ongoing supply chain bottlenecks and the war in
Ukraine proved an enormous shock. Soaring energy
costs and waning consumer confidence contributed
to a further 5-point decline in trade activity in Q2.
The UK followed the global trend in Q2, with tradeactivity dropping a further 5 points below the forecast

1 Interview with Credit Suisse CEO, CNBC, 04/27/2022

Q2'21
UK

Q3'21
EUR

Q4'21

Q1'22

Q2'22

CNY

range. A report from S&P Global 2 suggests anothervery difficult quarter for the UK with factory outputs
slowing to near-stagnation in June. The same report
also indicates a very similar picture in the US where
our data showed transaction volume growth slippingby a further 4 points in Q2. China’s zero-Covid policy
also continued to exert pressure on local supply
chains, with our data showing another 7-point fallin transactions against the expected range.
Businesses in every region are being challenged ata similar rate and by a familiar set of operationalpressures, including sky-rocketing energy prices, supply
chain bottlenecks and labour shortages. Given thenear-ubiquity of these challenges, it’s difficult to see
a significant recovery in the second half of 2022.

60
Q1'20

Q2'20

Q3'20

Q4'20

Q1'21

Invoices

Order volumes give us a glimpse into where GDP
could be heading in the next six months.. There is no
disguising it: the future looks decidedly bleak withorder volume growth on the Tradeshift platform fallingby a further 6 points against the expected range.

Q2'21

Q3'21

Q4'21

Q1'22

Q2'22

Orderssuggesting a prolonged period of declining ordervolumes that will test the cash flow of smaller suppliers
at a time when many are struggling with soaring costs.

The steep fall in ordering activity observed over the
past two quarters is now hitting suppliers. Invoicetraffic on the Tradeshift platform fell by 7 points in Q2,
the steepest drop in a year and the first time since
lockdown that we have seen a fall of this magnitudeacross both orders and invoices in the same quarter
The past two years have brought a variety of challenges
to supply chains. We have become accustomed to wildswings in our data as the subsequent volatility impacts
different elements of the supply chain in different ways.
What we’re seeing in Q2 is subtly but critically different,

2 IHS Markit, PMI Survey, 06/23/2022

p.8

The Tradeshift Index of Global Trade Health | Q2 2022

Rising costs and softening orders area double-whammy for suppliers
Average value of a single invoice submitted
on the Tradeshift platform - year on year comparison
20%
15%

Q2
momentumdeep-dive

10%
5%
0%

2021

2022
Percentage increase in value - year on year

The latest official data puts US inflation at 9.1%. In theUK, economists believe inflation may hit 11% this autumn.
As inflation continues to dominate the corporate agenda,
we looked at how the average value of an invoice
submitted on the Tradeshift platform has fluctuatedover time. Our analysis identified a sharp rise in thecosts running through supply since the beginning of
the year. In 2021, the average value of a single invoice
submitted via the Tradeshift platform was 3.25%
higher than the previous year. In the first six months of2022 the average invoice values have risen by 11%.
Meanwhile, a combination of falling orders and high costsmeans supplier cash flows are likely to face significant
cash flow pressures over the next six months or more.
In a challenging market, deferring payments andpushing out payment terms to suppliers are theprimary levers for CFOs looking to conserve cash.
Suppliers, who saw late invoice payments soarat the beginning of the pandemic, are becoming
increasingly nervous that history will repeat itself.
If you could improve one thing about collecting paymentsfrom your customers, what would it be?

Quarter on quarter performance

Solvinglate payments

across key territories

Soliving rejections
Slow / limited
communication
Payment
status visibility
Other
Settling with mybank account
0%

10%

20%

30%

According to one report, six in ten suppliers1 believe
late payments will increase significantly over the
next few months. Our own research suggests latepayments ranks top among the list of challenges
suppliers are looking to address with their customers.

1 European Payment Report 2022, Intrum, May 2022

40%

The Tradeshift Index of Global Trade Health | Q2 2022

US: Can supply chains stop therot before recession sets in?

Eurozone:Low growth of a lower base

US trade activity - quarter on quarter index scores

Eurozone trade activity - quarter on quarter index scores

Below expected range

Within expected range

Above expected range

Below expected range

Swing vs previous quarter:+2

0

Within expected range

Swing vs previous quarter:+1+9

Total activity across US supply chains climbed slightly
compared to the previous quarter, but remains justbelow the expected range in Q2. For all the obvious
difficulties, our data suggests US supply chains arecontinuing to operate at a relatively healthy rhythm.

showed that consumer spending rose less than expectedin May as motor vehicles remained scarce while higher
prices forced cutbacks on purchases of other goods.
Tradeshift’s analysis shows that order volumes stayed
below the expected range for the third quarter in a row.

The outbreak of war in Ukraine triggered the biggest
fall in activity we have seen on the Tradeshiftplatform since the first days of the pandemic.
Unsurprisingly, in Q1 the Eurozone was hit hardest
with order volumes dropping to near record lows.

Manufacturers in the US have been better insulated
from recent shocks than their counterparts in
Europe or Asia and healthy invoice traffic during
the quarter suggests that some of the recent
bottlenecks in the supply chain may be easing.

Most economists believe the current cocktail ofchallenges could tip the US into a recession by the end of
the year, but others argue that softening demand could
help ease inflation by allowing supply chains time tore-establish their equilibrium. A report by Dutch Financial
Services Group ING2 suggests US inflation may alreadyhave peaked; however, the author concedes that energy
costs and labour shortages will result in a slow descent.

The hit to supply chain operators in Q2 was far
less severe. Transaction volumes were just 5 points
below the baseline, compared to 14 points in Q1, butthese are small mercies in very challenging times.

One growing concern for supply chain operators is theimpact of current economic conditions on demand forgoods. Data from the U.S. Commerce Department1
1 Bloomberg, US Consumer Spending Cools in Sign of Economy
on Weaker Footing, 06/30/2022

Above expected range

2 ING, US inflation has peaked, but it will be a long slow descent,
05/30/2022

Invoice volumes across the Eurozone lost somemomentum in Q2 suggesting that the alarming
drop in orders we saw across the region in Q1 is
beginning to trickle through to suppliers. Worse
could be still to come. Order volumes recovered in

-1

+31

Q2, but quarter-on-quarter growth remains below
the baseline. What we’re seeing is lower than
expected growth coming from a very low base.
A recent report from Accenture1 suggests that
disruptions from COVID-19 and the war in Ukraine
could end up resulting in the Eurozone’s GDP losing
up to €920 billion (or 7.7%) by 2023. A swathe ofregulations aimed at decarbonising supply chains is likely
to trigger further challenges in the short term including
even higher costs. But a focus on sustainable sourcing
and green energy could well represent Europe’s best
hope of breaking the current cycle once and for all.
1 Accenture, From disruption to reinvention: The future of supply
chains in Europe, 05/23/2022

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The Tradeshift Index of Global Trade Health | Q2 2022

UK:
Reality bites

Reduced T&L activity mirrors
the wider slowdown

UK trade activity - quarter on quarter index scores

Quarter-on-quarter transaction volumes - Index scores by sector

Below expected range

Within expected range

T&L

Manufacturing

Retail

Tech

Q2'21

91

92

83

89

Q3'21

97

110

95

105

Q4’21

104

73

95

94

Q1’22

101

75

94

86

Q2’22

96

97

97

101

Above expected range

Swing vs previous quarter:-5
A slight rise in transaction activity during Q1
had us wondering how the UK had escaped theheadwinds hindering supply chains in other partsof the world. Q2’s lower-than-expected growthsuggests that this may have been the supply
chain equivalent of a ‘dead-cat bounce.’
A relatively healthy quarter-on-quarter picturein the UK data flatters to deceive. Transaction
volumes in the UK are less than half the level we
had forecast prior to the pandemic. Set into context,
the fact that UK transaction volumes lost more
momentum in Q2 should be a significant concern.
Ordering activity dropped 7 points below the baseline
in Q1 and remained 3 points below the expected
range in Q3. Robust order volumes have long been

-4+4

the saving grace for the UK’s supply chains, but we’ve
now seen successive quarters of declining volumes.
Lower than expected order volumes are now trickling
through to suppliers. Invoice volumes tipped back into
the red zone in Q2, dropping by 5 points comparedto the previous quarter. Many of the issues facing
UK supply chains are global but some, notably thecomplications stemming from Brexit, are unique to
UK business. Medical firm Pfizer has put the costof adapting its supply chain to meet Brexit trading
conditions at over $100m.1 Labour shortages triggeredby restrictions on free movement are also fuelinginflation at a time when businesses can ill-afford it.

1 Fierce Pharma, As Brexit costs mount, Pfizer estimates $100M
to adapt its supply chain 09/04/2018

significantly
below expectation

below
expectation

withinexpected range

The transport and logistics industry is the first casualtyof any recession; this quarter we saw activity in this
sector dipping below the expected range for the firsttime in a year. Demand remains high, but our datasuggests lower order volumes may reduce the pressure
on shipping capacity. Analysis by Drewry1 shows thatshipping container prices have been falling since March,a pattern which maps the decline in order volumes on
the Tradeshift platform since the beginning of the year.
Activity across the manufacturing sector found somerhythm in Q2 after a very challenging period during
which order volumes fell to their lowest level since
the first COVID lockdown. An Index score of 97 in Q2
suggests this loss of momentum could well extend
into the second half of the year, albeit at a slower
1 Drewry World Container Index, 7 July, 2022

above
expectation

significantly
above expectation

rate than we have seen in previous quarters.
The retail sector followed a very similar pattern to theone we have seen over the past year. Transaction
volumes continued to grow at slightly below the
expected range with a combination of rising costs
and waning consumer confidence likely factors.
Technology spending, which dropped steeply in Q1,
recovered sharply in Q2 with quarter on quarter growth
lifting activity above the expected range for the firsttime in a year. According to a recent Morgan Stanley
survey of CIOs,2 a majority say that the prospect of arecession would have little to no impact on planned
investments designed to digitize operations.

2 Techrepublic, If a recession hits, this is where CIOs plan to cut
spending, 06/23/22

p.14

The Tradeshift Index of Global Trade Health | Q2 2022

A digital future for
intra-African trade

What’snext?
Perspectives on the road ahead

Toby Sparrow is
CEO of Dooka, a
B2B marketplacethat aims totransform the way
African businesses connect andtrade with each other. We spoke
to Toby about structural andmacro-economic challenges thatbusinesses in Africa face andthe role technology can play inaccelerating intra-African trade.
Trade in Sub-Saharan Africa was hit
hard by the pandemic. Why is it that
trade in developing nations has suffereddisproportionately over the past two years?
The story of African procurement is rooted incomplexity. Even before the pandemic, African
procurement departments have faced disproportionate
challenges in regulation, operations, and execution.
For example, ports in Sub-Saharan Africa havethe worst efficiency globally – averaging 222
hours to import goods, 130 times worse than theirhigh income OECD equivalents. This situation
was exacerbated by the global pandemic.
Covid-19 hit African trade where it hurt. Sub-saharanbusinesses weren’t digitally ready. As one example,
African businesses lagged global peers in having digitalsource-to-pay systems by 10%. This lag meant that

African businesses struggled to adapt to new operating
conditions during lock-downs which were widespread
across the continent. This issue is addressable.
Sub-saharan Africa needs to address these challenges
by implementing digital tools to support hybrid working
in the event of further lockdowns and local sourcing
to shorten the supply chain and import issues. The
fragmented nature of the supply chain suggests that
B2B marketplaces may be a good fit. They are able tosupport complex sourcing and purchasing requirements
whilst optimizing for efficiency and transparency.
The pandemic has triggered a broadreassessment of the way supply chains arebuilt and operated. What opportunities mightthat reassessment bring for Africa?
The African continent has an opportunity to step aheadof global counterparts. This is a “leapfrog moment.”
Historically, “leapfrog” has been used to describe how
circumstances enable a country’s technology adoptionthat suddenly makes the country move from laggard
to leader in the adoption of that technology. A good
example was the rollout of mobile phones across subsaharan Africa instead of fixed landlines. Now, large
businesses have a similar opportunity to change how
they purchase. Historically, digital purchasing systems
have been like the “fixed landlines” in the mobile phone
example - they have slowly changed to digital where thesame paper processes are replicated in code. However,
now Africa has an opportunity to be the first continentthat extends the marketplace revolution in purchasingfrom the consumer world to the business world.
The pandemic is at the heart of this opportunity.
Covid-19 has caused a reassessment of what is
p.16

The Tradeshift Index of Global Trade Health | Q3 2021

possible in Africa and how digital can work across thecontinent. Now, African businesses want to increase
their use of digital processes by 32% by 2025. We
need to harness this desire to be world-leading andchange how we go about purchasing. This new reality
needs to be smooth, needs to be efficient and mostimportantly needs to be more transparent. These
are all things which we will be introducing over the
coming months as businesses large and small join the
Dooka marketplace. It is going to be a beacon andexample for the world of how smoothly business canbe transacted. We can bring business purchasing to
the same level of user experience as buying at home.

embracing of the digital revolution to ensure that orders
are received faster, goods get shipped faster, invoices
get sent instantly, and suppliers get paid faster - withtransparency across the entire process. These behaviours
need to become the norm, not just for individual consumerpurchases, but for business purchases - and businesspurchases across Africa. If African trade can make thatcrucial step into the digital world then the establishmentof the AfCFTA will become that much more real.

Much has been made of the African Free Trade
Agreement as a way to stimulate intra-African
trade. But some commentators fear it may lose
steam. What might accelerate the process?

The name Dooka came from the Swahili word ‘duka’
meaning a shop or market. As large companies embark
on their digital journeys, there is a risk that innovation,that is to say really reimagining how things can bedone for optimal value, gets forgotten. Just making
something digital doesn’t necessarily make it better orright. The idea of bringing the consumer online shopping
revolution into the corporate digital journey is one ofthose things that really does bring about positive change.
That’s what inspired us to launch Dooka in Africa.

The African Continental Free Trade Area is poised toopen intra-Africa borders. The agreement, ratified in
39 countries, creates a single market across Africa by
dropping 90% of tariffs. The widespread ratification of
the AfCFTA is one of those milestones that heralds the
much-awaited ignition of the African growth engine.
But, as you have rightly pointed out, it has had its
stumbling blocks. AfCFTA will fall short if the next
generation of trade in Africa is going to be an extension
and acceleration of the status quo. The future of a newgeneration of trading is not pushing more paper faster.
It is the elimination of paper and red tape. It is theCan you tell us more about the inspiration
for Dooka and the issues it aims to address
within the context of trade in Africa?

Dooka is going to power this transformation across theAfrican continent. In 2021, our founders came together
to pair deep local know-how and leading international
technology to change the way that corporations buy
goods and services across the African continent. We
have a vision of a digitally connected Africa where buyers
and sellers can be part of this trade transformation.

We believe that African procurement can be a force fordevelopment, a force for change, a force for growth.
For buyers, it is our vision that the phrase “Just Dooka
it!” will become popular when looking for cost-effective
purchasing of indirects and tail-spend items. We makeit slick and easy the next time you have to buy a setof pens or get a last minute food caterer. Rather thangoing through an extensive procurement process, we letbusiness buy on a marketplace (just like you do at home)whilst keeping the controls to prevent rogue spend.
For sellers, Dooka is a portal to more sales and increased
opportunity. We are a bridge for sellers to connect
with large buyers and expand what they can do.
Our latest Index mirrors other economic indicators insuggesting a difficult period ahead. How might thekind of digital infrastructure Dooka is building with
Tradeshift help to mitigate against such pressures?

ideal future of trade in Africa look like infive years, and what role does digitalization
have to play in enabling this?
Five years from now, we want sub-saharanAfrica to be an interconnected trade block. A
block where AfCFTA has opened the door to
intra-African trade and digital marketplace are
the the bridges to connect sellers and buyers.
Our ambition is to have built Dooka, which was merely
an idea back in 2021, to be an essential part of theAfrican business landscape. We want to ensure 50%
of African corporate indirect spending goes to Africancompanies by achieving our own three significant
milestones - serving 30+ large customers across 20
African nations, having handled over $1b in transactions,and supporting our suppliers with $100m in tradefinancing. We are committed to fundamentally increasing
the African value creation of large corporations.

Currently, we face a difficult period which will bringacutely difficult challenges for the African continent. In an
environment where resources are increasingly scarce anddifficult to deliver Dooka has a unique opportunity to build
stronger digital connections between buyers and sellers
using the Tradeshift network. Furthermore, when times
get tough, cost efficiencies and savings become more
important, and Dooka is all about making purchasing as
cost efficient as possible in a corporate environment.
Taking out your crystal ball, what does thep.18

The Tradeshift Index of Global Trade Health | Q2 2022

Final Thoughts:
Business leaders keep
their eyes on the horizon
For years now, governments, business leadersand policymakers have been predicting a major
shift in the global economy driven by the rise oftechnology in the workplace, increased geopoliticaluncertainty and a requirement to move towards
more sustainable business practices. The historyof that ‘Big Shift’ is now being written as businessleaders face the reality of a changed world.
At the recent World Economic Forum in Davos, much of
the conversation centred around the coming economic
storm. It would be an entirely natural impulse to batten
down the hatches and wait. We saw this early on in
the pandemic when large organizations reacted bycancelling orders and slowing payments to suppliers.
We know now that this attempt at short-term selfpreservation merely exacerbated the deep-seatedstructural issues within the current supply chain model.
Recessions are typically short-lived and followed bylong periods of growth and prosperity. A 2010 study
by Harvard Business Review1 analyzed the strategies
of companies during the previous three recessions, toidentify which traits led to post-recession winnings.
They found that “companies that master the delicate
balance between cutting costs to survive today and
1 Harvard Business Review, Roaring out of a recession,
March 2010

investing to grow tomorrow do well after recession.”
Business leaders in every sector are now acknowledging
what we have been saying for all these years. Amid
the gloomy short-term forecast, supply chain resilience,
access to finance and a focus on sustainable tradeare seen as the fastest route to a brighter future.
Alan Jope, CEO of Unilever, suggests we need toaccept crisis as the new normal.2 If that’s the case,there is no alternative but to keep our sights on thechallenges we will face once the current storm has
passed. Technology gives us many of the tools we needto lessen the resurgent influence of not only inflation
but other nagging supply chain issues as well.
Adversity is always a good motivator for both creative
thinking and collaborations of common interest.
The pressure to decarbonise and diversify supply
chains represents an enormous and immediatechallenge. Conversely, it could also be the catalyst
for a Wirtschaftswunder for the whole world.
With the advent of new technology and energy
sources, we could be on the cusp of a new industrial
revolution; one where highly skilled, rewarding
work delivers tangible long-term value for all.

2 Reuters, Unilever CEO sees crisis as new normal forindustry, 06/21/2022

p.20

AboutTradeshift’sIndex ofGlobal Trade
Health

Purpose

Methodology

Many of the world’s largest buyers and their suppliers
use Tradeshift’s trade technology network to exchange
digitized purchasing and invoicing information. The
data these transactions yield provide us with a uniqueawareness of trading activity between businesses.

The new model compares business-to-business
transaction volumes (orders processed from buyers andinvoices processed from suppliers) submitted via theTradeshift platform since Q1 2020 against a ‘baseline’ wehave created by analysing medium-term seasonal trends
in the transaction data that flows across our platform.

Tradeshift’s Index of Global Trade Healthanalyzes anonymized data flowing across
our platform to reveal a timely perspective of
how external events are impacting business-

A reading of 100 indicates growth in linewith expectations against historical trends.
Readings greater than and below 100 indicate

to-business commerce around the world.

above-trend and below-trend growth.

We acknowledge that there are limits to how
accurately our view of what is happening on our
network can reflect how complex global supply chainsare reacting to a variety of external factors. What ourdata does provide is a useful snapshot that provides
clues as to what might be happening to the global
economy. The patterns we see in our data become
more valuable as we combine them with other thirdparty data and expert insight, something which
you will see us draw on throughout this report.

We consistently strive to improve and evolve theaccuracy of our analysis. As a result it is possible thatfrom time to time you may see small revisions to historicalnumbers reported in previous versions of the Index.

How to read the charts
On pages 5 and 6 we have expressed the index
scores cumulatively from Q1’20 onwards. If the index
score in Q1’20 is 90 this would indicate that activity
was tracking at 10 points below the baseline for that
period. If our index score for the next quarter is also 90,
then the cumulative score in Q2 would appear as 80,
suggesting activity is losing momentum against where
we would expect it to have reached by that period.
Looking at the data in this ways helps show how
much momentum transaction volumes lost during theearly stages of the pandemic. It also gives us someclues as to how long it might take before cumulative
growth normalizes against projections we madebased on transaction flows prior to the pandemic.
On pages 9 to 11, we looked at how index scores arechanging quarter-on-quarter. Looking at the datain this way provides a useful indication of how thelevel of activity is fluctuating across different sectors
and geographies from one quarter to the next.

p.22

About Tradeshift
Tradeshift is a market leader in e-invoicing and accounts payable
automation and an innovator in B2B marketplaces and providing
access to supplier financing. Its cloud-based platform helps buyers
and suppliers digitize invoice processing, automate accounts payable
workflows and scale quickly. Headquartered in San Francisco,
Tradeshift’s vision is to connect every company in the world, creating
economic opportunity for all. Today, the Tradeshift Network is home
to a rapidly growing community of buyers and sellers operatingin more than 190 countries. Find out more at: Tradeshift.com© 2022 Tradeshift Holdings, Inc. or a Tradeshift affiliate company. All rights reserved.
The Tradeshift Global Health of Trade Index and this report are copyrighted works. This
document is protected by U.S. and international copyright and intellectual property laws.
It may be linked to and referenced with the following attribution “Tradeshift © 2022
Tradeshift Holdings, Inc.”
Tradeshift is a registered trademark or trademark of Tradeshift Holdings, Inc. in the UnitedStates and/or other jurisdictions. All other marks and names mentioned in this article may
be trademarks of their respective companies.
This report is intended for information purposes only, is based on a segment of industry
data and may not prove to be an accurate representation of trade volumes. Tradeshift
makes no warranty or representation as to the accuracy of this information.