SHPP - Global Supply Chain Pressures - Is It Different This Time Or Just A Matter Of Timing?
2024-02-21 01:15:00 ET
Summary
- Fears of another global supply chain shock have been prompted by Red Sea shipping disruption, and increased geopolitical tension in the Middle East.
- But supply chain pressures have increased only modestly, to date, with pressure indices mean-reverting to pre-Covid levels.
- Indeed, the easing of supply chain pressures in tradable goods in 2023 has driven sharp declines in goods inflation, suggesting supply chains are more resilient than assumed post-Covid.
By Robin Marshall, Director, Fixed Income and Multi-Asset Research and Alex Nae, Quantitative Research Analyst, LSEG
After the perfect storm for global supply chain pressures in 2021-22…
It is well known that disruption to global supply chains had a major bearing on both global growth and inflation when the Covid pandemic emerged in 2020....
Global Supply Chain Pressures - Is It Different This Time, Or Just A Matter Of Timing?