Cooling Demand for Goods Threatens to Turn Pandemic Boom Into Bust

Factories around the world are reporting weakening demand for their products, a sign that the consumer-goods boom that kick-started the postpandemic economic recovery could turn into a bust as surging prices and interest rates erode spending power.

Surveys of manufacturers released Friday told a similar story whether the factory was in South Korea or Italy: Output is falling or is rising at a slower pace, driven by declines in new orders, and particularly those from overseas buyers.