world-economy

China's June Recovery Lifts Asia-U.S. Freight Rates to Two-Year High

China's economy showed renewed momentum in June as manufacturing activity accelerated and retail sales rebounded from weakness in prior months, according to a survey of 1,321 Chinese businesses. U.S.-bound orders posted sharp year-on-year gains, reversing double-digit declines from the previous year when tariffs increased. The uptick in export demand has driven Asia-America container freight rates to their highest levels in nearly two years. Importers rushed to move goods ahead of anticipated fuel surcharges and price increases from suppliers. Luxury goods sales surged while tourism-related spending remained subdued. The second-quarter recovery followed a slowdown in April and May that included China's first retail sales decline since the pandemic. Goldman Sachs projects further economic acceleration in the third quarter, citing faster fiscal spending and lower oil prices.