Global supply chain issues blamed for disrupting the flow of goods and sparking higher inflation may have finally peaked, according to a new gauge from the Federal Reserve Bank of New York, but the rapid spread of the omicron variant of COVID-19 has already caused a new wave of labor and supply chain problems.
As the New York Fed noted in a blog post published on Tuesday, supply chain disruptions have become a major challenge for the global economy since the start of the COVID-19 pandemic.
Factory shutdowns, particularly in Asia, along with widespread lockdowns and mobility restrictions have resulted in disruptions across logistics networks, increases in shipping costs and longer delivery times.
In the post, the New York Fed unveiled a new gauge, the Global Supply Chain Pressure Index (GSCPI), which integrates a number of commonly used metrics with an aim of providing a more comprehensive summary of potential disruptions affecting global supply chains.
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