November 04, 2022 | 10:38
Progress in Supply Chain Pressures Stalls
The downward trend in global supply chain pressures came to a halt in October, though it could well resume in the months ahead if China eases its COVID restrictions and the war in Ukraine does not escalate. The New York Fed's measure ticked up following five straight monthly declines. The upturn was led by increased strains in parts of Asia and the U.K.
Apart from an upward lurch at the onset of the Ukraine war, the index has trended downwards this year amid improved factory supplier delivery times and order backlogs and lower freight charges. The index is now just one standard deviation above its long-run average--a big improvement from the record high of 4.3 deviations registered in late 2021 during the Omicron wave. According to the Dallas Fed, supply chain disruptions may have contributed to half of the inflation surge during the pandemic. So, any future improvement here would help global central bankers in their epic battle.