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Wary Consumers Still Sustain Retailers; Robots Rebuild China's Economy; Holiday Logistics Miracle By Mark R. Long | WSJ Logistics Report

American consumers closed out the third quarter on a cautious footing, shutdown-delayed data showed, while a measure of consumer confidence tumbled in November. Taken together, the WSJ's Harriet Torry writes, the new and older data suggest the U.S. economy is heading into the holidays buffeted

by a cooling labor market, inflationary pressures and signs consumers were easing their spending and searching for bargains.

Retail sales rose a seasonally adjusted 0.2% in September from the prior month, the Commerce Department said. The data reflect a period just before the government shutdown began. Meanwhile, a survey from the Conference Board found consumer confidence declined to 88.7 in November from 95.5 in October. Only 1% of consumers said business conditions were "good," down from 21% in October.

The downbeat indicators contrast with strong results

from Walmart and T.J. Maxx owner TJX last week, and Amazon last month , as well as a slew of relatively encouraging earnings reports from retailers on Tuesday:

Kohl's raised its full-year outlook

and posted a surprise quarterly profit, saying its turnaround was gaining momentum, sending shares sharply higher. Best Buy boosted its full-year forecast and said consumers are still willing to spend

on new tech products, despite a focus on finding deals. Dick's Sporting Goods raised its full-year comparable-sales outlook

for its namesake banner and said its acquisition of Foot Locker was a growth opportunity, despite challenges. Burlington Stores posted higher sales

and raised its full-year outlook as consumers flock to off-price retailers. Abercrombie & Fitch narrowed its full-year guidance toward the high end of its range

after sales rose on strong back-to-school and fall seasons.

Note to Readers: The WSJ Logistics Report won't be published Thursday or Friday in observance of the Thanksgiving Day holiday in the U.S. We will be back Monday.

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Number of the Day Industrial Automation

China's factory and port operators are using robots and AI to make and export goods even faster and cheaper than before, as the nation vies to maintain its global manufacturing dominance . The Journal's Brian Spegele writes that executives involved in China's efforts liken the future of factories to living organisms that increasingly think and act for themselves.

China's embrace of AI carries risks, and in areas such as frontier AI tech and chips, it lags the U.S. Still, China installed 295,000 industrial robots last year, nearly nine times as many as the U.S.

Upgrading the nation's ports is a special priority for leader Xi Jinping. The port of Tianjin teamed up with tech giant Huawei to launch a fleet of unmanned trucks and a system that optimizes tens of millions of variables and constraints such as ship arrival times and crane capacity to manage scheduling. Planning that used to take 24 hours now takes 10 minutes, Huawei says.

Deflationary Measures

Santa Claus coming to town isn't the only yearly magic of the Macy's Thanksgiving Day Parade. So, too, is the frantic, 15-minute logistical scramble after the final march , the Journal's Amira McKee writes. Teams must swiftly and safely deflate the massive helium balloons, which can take up to 12,000 cubic feet of gas, using specialized zippers and "rolling techniques." It's a high-pressure engineering marvel that teams train all year to execute.

Quotable In Other News Higher energy and food costs lifted September wholesale prices , though certain items that feed the Fed's preferred inflation metric are likely to leave that reading little changed from recent months. (WSJ) U.S. employers shed an average of 13,500 private-sector jobs

a week in the four weeks ended Nov. 8, payroll processor ADP said in a new report. (WSJ) U.S. home prices increased by 1.3%

in the 12 months through September, a slowdown from the 1.4% rise in August, according to S&P Cotality Case-Shiller National Home Price Index. (WSJ) Germany's economy, stagnant since 2019, is projected by the EU to grow by 1.2%

in both 2026 and 2027. (WSJ) Shares of ZIM Integrated Shipping Services rose after the U.S.-listed Israeli carrier said it was evaluating interest it has received from multiple parties since launching a strategic review. (Dow Jones Newswires) The U.S. Navy plans to cancel orders

for four new Constellation-class frigates after the government's extensive design modifications set back construction by years. (WSJ) AI firm o9 Solutions sued SAP, alleging three of its former executives stole supply-chain management software

secrets. (Bloomberg) Australia's Novonix is transforming a former turbine plant in Tennessee into a large synthetic-graphite facility

to help ease China's grip on the mineral used in EV batteries. (Nikkei Asia) South Korea's Hanwha Group is injecting more $887 million

in U.S. subsidiaries to fund a new joint venture and deepen its push into American shipbuilding and defense. (Lloyd's List) The Olympic pipeline that delivers jet fuel to Seattle-Tacoma International Airport was partially restarted after crews found the source of a leak

that threatened to disrupt flights. (King-TV) A.P. Moller-Maersk declined to set a date

for its return to the Suez Canal as the threat from Houthi militants eases, saying it would resume navigation as soon as conditions allow. (Sourcing Journal) HD Hyundai won a $1.5 billion contract to build eight dual-fuel containerships

for South Korean carrier HMM. (gCaptain) About Us

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 .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

November 26, 2025 07:04 ET (12:04 GMT)

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