world-economy

Consumer Spending Slows as Inflation Erodes Purchasing Power Globally

U.S. consumer spending gains stalled in April as inflation pressures weighed on household incomes. The savings rate fell to its lowest level in nearly four years. The slowdown reflects broader economic headwinds across North America, where Canada entered technical recession in the first quarter. Weak business and government expenditure drove the contraction. Energy prices and tariff-driven inflation have proven resistant to conventional monetary policy responses, according to Federal Reserve officials. The contractions contrast sharply with Brazil's economy, which expanded at the year's start. Agricultural gains and government stimulus measures fueled the rebound. Freight industry analysts note that global disruptions could drive rate volatility in coming weeks, with carriers positioned to benefit as downstream impacts cascade through logistics networks.