Chinese E-Commerce Giant PDDs Warning Signals Broad Consumer Spending Slump

PDD Holdings Inc., the owner of Temu and Pinduoduo, issued a surprisingly negative outlook, signaling that China`s economic slowdown is impacting even the most affordable consumer goods. Despite being known for low prices that attracted budget-conscious shoppers, PDD reported disappointing revenue and predicted declining profits due to shifting consumer behavior and increased competition. This news, coupled with recent struggles faced by companies like Starbucks and Din Tai Fung in China, has raised concerns about the strength of Chinese consumer spending, a crucial factor for the country`s economic recovery. PDD`s stock plummeted, dragging down shares of e-commerce rivals like Alibaba and JD.com.