High pressures on global supply chain networks and a surge in inflation may have peaked, according to the New York Federal Reserve Global Supply Chain Pressure Index (GSCPI). The index uses 27 variables including shipping rates and air freight costs between the United States, Asia and Europe.
“More recently, the [index] seems to suggest that global supply chain pressures, while still historically high, have peaked and might start to moderate somewhat going forward,” the researchers wrote in a blog post. Researchers found “enormous growth” in shipping costs since the beginning of the recovery from the lows at the start of the pandemic. However, the growth has started to slow.
The index, drawing on data going back to 1997, shows global supply chain pressures are substantially higher than in previous times of stress.
A separate report suggested that supply constraints are starting to ease as delivery times improve. The Institute for Supply Management (ISM) survey also found that prices paid by manufacturers fell last month by the most in a decade.
