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US Manufacturing Extends Growth Streak Despite Iran War Headwinds

American manufacturing expanded for the 20th consecutive month in June, though growth decelerated compared to May. Persistent concerns over geopolitical tensions and commodity price swings stemming from the Iran conflict weighed on producers.

Freight markets are showing mixed signals. Ocean container rates from South America to North America surged, with 40-foot shipments from Brazil to US ports jumping 50% to $3,000 last month. However, analysts attribute the spike to front-loading rather than underlying demand strength.

Airfreight markets are stabilizing following reduced Iran tensions. Global airfreight rates declined 5% week-over-week as fuel costs retreated from elevated levels. Meanwhile, Chinese exporters are capitalizing on renewed US import demand, providing a modest lift to transpacific trade flows.