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- The April reading of the Global Supply Chain Pressure Index ("GSCPI") worsened due to issues in China and the euro area and increased backlogs in the U.K., the New York Fed's Liberty Street Economics unit said Wednesday.
- The GSCPI estimate increased to 3.29 in April from 2.80 in March (revised from 2.82). As recently as December, the index stood at 4.45. The higher the number the higher the pressure is on global supply chains.
- The index is especially salient since supply chain disruptions have contributed to inflationary pressures. That's a key reason for the Federal Reserve to raise interest rates in an effort to constrain demand and allow supply chains and production to catch up.
- The economists at the NY Fed see the potential for heightened geopolitical tensions stoking supply chain pressures in the near term.
- A relatively new gauge, the GSCPI will be published on the fourth day of each month at 10:00 AM ET.
- Previously (March 3), Global supply chain pressure index eased in February but stays elevated
- Earlier this month, Fed Governor Chris Waller said it would be "great" if supply chain issues get resolved, but he's not counting on it.