Supply Chain Pressure Eases

Chart of the Week: Supply Chain Pressure Eases…Slightly

If you really squint, you can see it: According to a new index constructed by the Federal Reserve Bank of New York, global supply chains started easing in November. The trend continued in December despite the omicron wave of COVID-19. You can find other signs of easing supply chain and inflationary pressures in the ISM manufacturing report from last week as well as in falling producer prices in China. Supply chains won’t stay as kinked as they’ve been; it just takes time for suppliers to come back online to meet demand.

Supply chain
Note: Chart shows monthly deviation from normal index level from December 1997 through December 2021 for the Global Supply Chain Pressure Index. Source: Federal Reserve Bank of New York.

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