world-economy

China Consumer Pullback Signals Economic Headwinds Despite Export Strength

China's consumer spending declined last month for the first time since the COVID-19 pandemic, marking a concerning reversal as domestic investment also softened. The contraction underscores persistent fragility in the world's second-largest economy, even as robust export demand and easing geopolitical tensions around Iran provide some support. Meanwhile, U.S. manufacturing output stalled in May following four consecutive months of gains, with weakness in chemical and petroleum sectors offsetting continued strength in data center-related production. The slowdown arrives as freight markets face fresh pressures. Shippers are being forced to renegotiate contracts after rates locked in months earlier no longer reflect current conditions. The U.S.-Iran peace accord could reopen the Strait of Hormuz, though shipping and logistics normalization may take additional months.