Transportation Secretary Pete Buttigieg acknowledged Wednesday that regardless of the Biden administration’s efforts to handle bottlenecks, it’ll take time to get provide chains again to regular.
“There are going to be disruptions and shocks to the system as long as the pandemic continues,” Buttigieg advised CNN’s Jim Sciutto.
‘There are not any shiny spots’
To measure the logistical strains impacting the economic system, Moody’s not too long ago created a US provide chain stress index that’s made up of varied metrics for manufacturing, stock and transportation. That index climbed to 135.9 in August, in contrast with pre-pandemic ranges of about 100.
Moody’s mentioned early indicators level to a different improve within the provide chain stress index for September, pushed by the additional value will increase.
“Stress in US supply chains isn’t abating,” the economists wrote.
In an interview, Colyar mentioned not one of the underlying metrics are displaying enchancment at this level.
“Everything is moving in the wrong direction,” he mentioned. “There are no bright spots,”
Supply chain stress is slowing the economic system
The logistics nightmare is posing an actual impediment for the financial restoration from Covid-19.
Moody’s warned that “sand in the gears” of the worldwide economic system may trigger the US economic system to develop extra slowly than beforehand forecast.
Indeed, there’s a threat that the US economic system barely grew in any respect within the third quarter, which led to September.
That’s down sharply from a name for GDP development of 1.2% as not too long ago as final week, and practically 4% final month.
Wall Street economists, nevertheless, are rather more optimistic and are calling for GDP development of just about 4% — though that is down from forecasts over the summer time.
CNN’s Nathaniel Meyersohn contributed to this report