An index of global tropical cyclone activity (GTCA) is extracted from an in
terbasin dispersion matrix composed of correlations in the frequency of tro
pical cyclones among the five principal basins of activity over the period
1966-1998. The extraction is performed using a single-factor common factor
analysis model. Factor scores-provide the index of GTCA. The time series of
factor scores is matched with annual series' of the El Nino-southern oscil
lation (ENSO) and the North Atlantic oscillation (NAO) revealing a statisti
cal link to the NAG, but not to the ENSO. Results suggest a greater role of
high latitude atmospheric and oceanic processes in modulating tropical cyc
lone climate than previously :considered.