Supply chain pressures in the global economy increased modestly in September, according to a report from the Federal Reserve Bank of New York. The Global Supply Chain Pressure Index rose to 1.28 from an upwardly revised 1.20 in August, though it remains below recent peaks.
Elevated supply chain pressures can contribute to inflation, which the Federal Reserve is working to combat through interest rate hikes. The index's movement provides insight into potential future inflation trends.
Supply chain pressures in the global economy increased modestly in September, according to a report from the Federal Reserve Bank of New York. The bank's Global Supply Chain Pressure Index moved up to 1.28 in September, compared to an upwardly revised 1.20 in August.
The report did not specify the drivers behind the index's recent performance. The index is designed to track the functioning of global supply chains.
Despite the increase in September, supply chain pressures have retreated from their most recent peak of 1.81 recorded in May. This level, while elevated, is significantly lower than the 4.43 reading seen in December 2021, which captured the widespread disruptions caused by the COVID-19 pandemic.
Elevated supply chain pressures can contribute to inflation. Federal Reserve officials raised their interest rate target last month and have signaled another increase for year-end as part of efforts to bring inflation back to the 2% target.
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