By Michael S. Derby
NEW YORK (Reuters) – The New York Federal Reserve reported on Monday that stress on global supply chains fell sharply last month, which could point to a drop in inflation as Time lapse levels.
The bank said its monthly global supply chain index fell to minus 0 from a revised 0.
94 February Seen in January. February’s negative reading was the first since August
The February readings indicated a significant drop in supply chain stress, which has created major problems across the global economy due to the coronavirus pandemic, the bank said. The bank said the recent change in the index “suggests that global supply chain conditions have returned to normal after a temporary setback around the beginning of the year.” a significant driver. Easier shipping of goods around the world may help ease pressure on prices, latest data suggest.
The New York Fed report comes amid a major shift in supply chain dynamics as China’s economy reopens after an extended period of active lockdown. Economists and policymakers have been debating whether China’s re-engagement will push up inflationary pressures due to increased economic activity, or reduce inflationary pressures by reducing the kinks supply chains have suffered over the past three years.
In the report, the New York Fed said the latest decline in supply chain pressures was driven by a combination of factors, but it noted that the biggest contribution came from improving European economic delivery times.
(This story has been corrected to fix the revised number in paragraph 2)