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Manufacturing Demand Shows Cracks as Price Pressures Mount

Manufacturing activity is cooling from four-year peaks as rising output costs threaten to dampen demand, economists warned this week. Freight volumes remain resilient despite ongoing consumer spending pressures. However, shippers face mounting headwinds from elevated fuel surcharges tied to oil prices above $100 per barrel. Container operators report demand holding steadier than anticipated despite tariffs and geopolitical disruptions. Uncertainty over routing decisions and volatile pricing mechanisms continue to cloud near-term outlooks. China's industrial output exceeded forecasts, but retail sales growth slowed and investment activity deteriorated, signaling potential softening in global trade flows. Logistics providers are bracing for demand volatility as emergency fuel surcharges remain locked in. Week-to-week pricing uncertainty creates exposure for freight costs. Price inflation and Middle East supply concerns leave shippers vulnerable to further rate fluctuations.