%Aluminum and other industrial metals are seeing their prices fall amid growing signs that the U.S. economy is weakening.
Aluminum’s price has dropped from an eight-month high as sentiment turns cautious following weak U.S. economic data.
The price of aluminum has declined 1.3% to $2,652.50 U.S. a ton on the London Metal Exchange, which adds to a 1.4% decline on Feb. 21.
At the same time, the price of copper is down 0.7% and zinc has dropped 1.9%.
The drop in metal prices comes as recent data points to two worrisome trends for the U.S. economy, rising inflation and weak consumer spending.
January’s inflation rate in America came in hotter than expected and consumers appear to be rolling over.
The University of Michigan’s U.S. consumer sentiment index fell 10% in January as shoppers raised concerns about higher-than-expected inflation and potential impacts from tariffs.
Wall Street suffered its worst loss of the year on Feb. 21 as the blue-chip Dow Jones Industrial Average fell about 700 points on the day.
Until now, industrial metals had rallied to start 2025 as the demand outlook held up despite risks posed by U.S. President Donald Trump’s bid to shake-up global trade.
