As the COVID-19 crisis is wearing off in many parts of the world, supply chain troubles are increasing once more for many companies, mainly concerning the United States and the Eurozone. Components of the International Monetary Fund’s (IMF) purchasing managers’ index show how supply chain disruptions have developed during the pandemic, spiking in early 2020 and picking back up over the course of 2021 as the “new normal” causes all types of goods to become more sought after amid a more permanent reopening. The supply chains in China and emerging markets, on the other hand, have proven to be less affected.
Still reeling from lockdowns and restrictions as well as the loss of manpower due to illness and/or travel restrictions, many suppliers had to restrict their production and were no longer able to meet their delivery obligations in full. And as even a single missing supply part can quickly affect the production process in a huge way, the complex structure of global supply chains can quickly unfold.
According to the IMF, supply chain disruptions together with increasing raw material prices are also a reason for the rise of consumer prices. The IMF expected this global inflation to reach its peak at the end of this year and return to pre-COVID levels in many countries by mid-2022.
The index is calculated by the IMF using the difference between the delivery time and production indexes of the PMI. The higher the value, the more disturbances occur in global supply chains.
Get instructions on how to enable our Flash News Briefing skill to your Amazon devices:
6 Must-Have Estate Planning Elements