Global manufacturing and service sentiment remains positive but there is no doubt there are mounting concerns about rising inflation and the wider impact of the Russia-Ukraine conflict with consumer spending in Europe already starting to dip.

That said, Maersk sees demand from Asia to all major markets including North America, Europe and the Africa remaining firm in the approaching peak season with Shanghai continues to return to normal from its lengthy lockdown.

Maersk bolstered its network this month, closing the acquisition of global freight forwarder Senator International and launching its first coastal service in New Zealand. The Senator deal will boost Maersk’s airfreight capabilities while the inauguration of its New Zealand Coastal service will improve port connectivity and schedule reliability for customers in New Zealand.

Market Trends

Headwinds are building for the global economy amid increasing concern about the impact of inflation, the Russia-Ukraine conflict and continuing supply chain disruptions partly from China’s zero-Covid-19 policy. Data showed that while the global Purchasing Manager’s Index, which reflects business sentiment in the manufacturing and service sectors, was broadly stable at 51.5 in May.

Despite on-going economic and geopolitical shocks there is concern the global economy is losing momentum. Consensus forecasts suggest the global economy will grow by 3% this year although projections show this will ease to 2.9% next year. Inflation and the Russia-Ukraine conflict are increasing the risk of a sharp slowdown or recession although they are not yet part of the consensus view.

Data also shows that while the US is experiencing unprecedented consumer demand, consumer spending in Europe and Britain has dipped below historic trends and the current spending boom has peaked.

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