world-economy

Middle East Tensions Weigh on Global Manufacturing Outlook

Manufacturing sentiment in South Africa fell to a seven-month low as producers expressed concern over potential demand disruptions from escalating Middle East hostilities. This pullback contrasts sharply with Southeast Asia, where factory activity accelerated in July to its strongest pace since the regional conflict began, driven by growth in new orders and production. Air cargo capacity expanded during the period, with National Airlines placing its third Boeing 777-200 freighter into service and scheduling additional deliveries. However, freight rates continued declining despite regional tensions and higher fuel costs, signaling weakened demand across some trade lanes. Technology shipments and urgent cargo maintained growth momentum, with June demand rising 8.5% year-over-year according to industry data. The disconnect between expanding capacity and falling rates suggests carriers are managing network adjustments amid uneven global demand conditions.