Trade tensions might be holding back global trade in goods, the World Trade Organisation (WTO) said in a report showing a mild slowing down of trade growth in the second quarter of 2018, released on Friday.

The WTO Trade Outlook Indicator (WTOI), published since Q3 2016 to signal potential changes in world trade trends, was reduced by half a point in this quarter compared to its value in the first quarter, from 102.3 to 101.8 points.

Values of over 100 points in the WTO indicator signal faster growth compared to the previous period, while the ones under that figure signal the slowing down of trade growth.

“This mild drop in the current WTOI report reflects the drop of sub-indices of export orders, but air cargo as well, which might be connected to the escalating economic insecurity due to increased trade tensions,” WTO said in a release.

In April this year, WTO predicted that trade in goods would go up by 4.4 percent, after a 10-year average growth of 3.0 percent. They warned that the growth might be undermined by the many governments’ restrictive trade measures and their tit-for-tat policies.

“Risks to the trade forecast stemming from the increased tensions in trade are still present,” WTO said.

The WTOI involves seven components serving as main trade indicators. The export order sub-indices in the current report dropped to 98.1 point, from 102.8 points in the first quarter.

The air cargo sub-indices weakened as well, dropping to 102.5 points, according to the International Air Cargo Association.

Automobile manufacturing and sales, as well as containter port traffic showed signs of stagnation, while electronic components indices have gone up to 104.2 points, from 94.1 in the previous report.

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