Americans are feeling strapped and are on the hunt for good deals. The Wall Street Journal’s Katherine Hamilton and Natasha Khan write that shoppers, wary about inflation, job expectations and their personal finances, are dialing down their spending to focus on the essentials and forego the extras.

Consumer spending stagnated in the first half of this year, according to federal data issued last week and the CEOs of retailers, restaurants and consumer-goods makers. To make do, Americans are using up the goods in their pantry and seeking value by buying in bulk or purchasing smaller packs to spend less. Families who dine out are trading down for cheaper options, too.

Even with all the anxiety, underlying data have been generally solid. That changed last week, the Journal’s Paul Kiernan writes, with reports showing economic output and consumer spending slowed markedly in the first half. Job growth over the past three months was at its lowest since 2010, except during the pandemic’s peak. Layoffs have been relatively sparse, but challenges loom.

Although GDP rebounded in the second quarter, closely watched sales to consumers and businesses came in at their weakest since late 2022. Another survey showed manufacturing activity contracted in July for a fifth consecutive month, with respondents citing greater uncertainty and President Trump’s tariffs.

• More than 1.8 million people have been unemployed for at least 27 weeks, the highest level since 2017, excluding the pandemic. (WSJ)
• U.S. factory activity continued to slide backward in July. (WSJ)
• China’s manufacturing PMI fell to 49.5 in July, signaling contraction. (WSJ)
• Southeast Asian manufacturers’ sentiment fell to its lowest level since the pandemic. (WSJ)
• Eurozone inflation remained steady at 2.0% in July, matching June’s rate. (WSJ)

Prologis, J.B. Hunt, United Parcel Service and other logistics companies are coping with rapid shifts in freight demand as Trump’s trade war progresses.

Importers have rushed in goods to beat tariffs and slowed orders when duties have increased. At the same time, the logistics sector continues to grapple with a yearslong slump in freight demand following the pandemic. Nevertheless, some companies in the sector see reason for optimism. 

WSJ reporter Esther Fung joins the What’s News podcast to discuss what companies are saying in earnings reports and analyst calls.

China is limiting the flow of rare earths and other critical minerals to Western defense manufacturers. This is delaying production and forcing companies to scour the world for stockpiles of the material used in everything from jet fighters to night-vision goggles.

As U.S.-China trade tensions soared, Beijing tightened its controls on exports of rare earths. Though it allowed them to start flowing after a trade truce, Beijing has kept its lock on the minerals for defense purposes, the Journal’s Jon Emont, Heather Somerville and Alistair MacDonald write.

The squeeze on rare earths highlights how dependent the U.S. military is on China for much of its supply chain—giving Beijing leverage at a time of rising tensions and heated trade negotiations.

• A sailor’s death on a submarine, amid substandard repairs, highlights the Navy’s struggle to maintain its existing fleet. (WSJ)

Apple's tariff costs will rise to about $1.1 billion in the current quarter after levies cost it about $800 million last quarter. (WSJ)

The restaurant industry is warning about higher costs from Trump’s tariffs and asking for exemptions. (WSJ)

Boeing leaders face another picket line today after machinists in its St. Louis-area defense business rejected their latest contract offer. (WSJ)

Amazon’s retail business is raining profits, but rivals’ accelerating cloud-computing growth points to AI momentum that AWS doesn’t show yet. (WSJ)

A Florida jury found Tesla was partly to blame over a fatal 2019 collision, awarding the plaintiffs nearly $329 million in damages. (WSJ)

Colgate-Palmolive said it needs to further raise prices and adjust product sizes to hit the low end of its full-year organic sales outlook. (WSJ)

Exxon Mobil’s CEO said the energy giant is looking at buying other oil companies after losing its challenge to Chevron’s deal for Hess. (WSJ)

Turmoil at the Commerce Department’s export bureau has stalled thousands of applications by U.S. companies to export goods and technology. (Reuters)

U.S. port officials warned lawmakers that the current Army Corps of Engineers budget could cost them about $1 billion in maintenance funding. (Journal of Commerce)

Toyota Motor told suppliers it plans to increase global production this year to about 10 million vehicles. (Nikkei Asia)

Japanese carrier Ocean Network Express slashed its profit outlook for fiscal 2025 by 36%. (Lloyd’s List)

The owner and the operator of the ship that crashed into Baltimore’s Francis Scott Key Bridge last year are suing shipbuilder Hyundai Heavy Industries for alleged negligence. (Maritime Executive)

Airbus delivered about 18% fewer aircraft in June than a year earlier, because of a shortage of engines for its best-selling model. (Bloomberg)

London’s Heathrow Airport said a privately financed third runway could increase cargo capacity by 50% in a proposal it submitted to the U.K. government. (Air Cargo News)

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.