Global Supply Chains Are Under Pressure | Presented by CME Group

Summary

The video reports that global supply chain pressure indexes have hit their highest levels since 2022. Manufacturers are stockpiling inventory due to Middle East conflict disrupting maritime routes and keeping energy prices high. Central banks are caught in a difficult spot between fighting inflation and supporting growth.

• New York Fed's global supply chain pressure index hit 1.82 in April, highest since 2022.
• GEP global supply chain volatility index reached 164 in April, also a 2022 high.
• Manufacturers are panic buying inventory at a pace not seen since the post-pandemic squeeze.
• Middle East conflict is pushing freight costs to record highs and disrupting maritime routes.
• Energy prices remain high and volatile, contributing to supply chain stress.
• Central banks face a dilemma: raising rates risks crushing growth, holding steady risks higher inflation.
• Policy makers are managing a supply shock with demand-side tools, and pressure is still building.