Imports Collapse in California

It's hard to imagine an economic recovery without a recovery in global trade. The Baltic Dry Index, a proxy for global trade, has collapsed almost 40% since May. From the LA Times, Imports Dive at Ports of los Angeles and Long Beach:

In another sign of how deep the global recession has become, the ports of Los Angeles and Long Beach on Friday reported their worst combined import statistics for September in nine years.

September is often the busiest month at the nation's biggest port complex, making it one of the best barometers of the health of the economy and international trade.

The port of Los Angeles received 309,078 containers packed with imported goods in September, representing a decline of 16% from the same month last year and 27% from September 2006, L.A.'s best month ever for imports. Long Beach received 224,924 import containers in September, a drop of 19% from a year earlier and 32% from September 2007, the port's best September ever.

Import data provide perhaps the most untainted evidence that consumption in America is weak, and that government stimulus programs are not working. Expect more job losses in California as a result of weakening trade. The evidence keeps coming in that this recovery is built on sand.