Research Briefing | Jul 13, 2022

US supply chain easing may bode well for inflation

Supply chain dynamics improved for the third straight month in June, according to our tracker. Pressures eased most on the inflation front, though prices were still very high. Logistics faced less challenges as logjams declined and shipping prices retreated. Stress declined on the inventories front and there was a healthier balance between labor demand and supply.

What you will learn:

  • Activity was the only component of our tracker to record a higher level of stress.
  • Cargo ship backlogs off the coast of LA and Long Beach fell for the fifth consecutive month.
  • Cooling US domestic goods spending is easing transportation strains and China’s strict Covid policy also continued to lower stress.

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