wildwell writes:

International air cargo traffic dropped 1.6 percent in May over the same month last year in a sign of the mounting effect of high oil prices on the world economy, the airline body IATA said on Wednesday.

"May cargo growth slipped into negative territory in Asia, North America, Latin America and Europe, following a sluggish performance since the beginning of 2005," International Air Transport Association Director General Giovanni Bisignani said in a statement.

"As a leading economic indicator, the slowdown in cargo traffic demonstrates that the high price of oil is slowing the global economy faster than expected," he said.

Nearly 50 percent of traded goods by value are carried by air, and trade analysts say the May drop in cargo volume -- leaving overall growth for the first five months at only 3.1 percent -- suggested that overall global trade is slowing.