Global Economy Relies on Consumer Spending Amidst Manufacturing Slowdowns and Cost-of-Living Crisis.

The global economy is increasingly relying on services for momentum as factories across major economies struggle to clinch orders and show signs of contraction. With consumers shifting their focus to services, the goods side of the global economy is struggling with excess inventories. The most aggressive interest-rate hikes in decades by the Federal Reserve and Europe’s central banks have made it much costlier to fund capital spending. The news sent stocks sliding and government bonds climbing across global markets, after a notable run-up in equities stoked by enthusiasm over the booming AI industry.