Rising Prices From Supply-Chain Issues Are Crippling The Economic Reopening

  • You might have noticed that you’ve been shelling out more for things like houses, gas, and cars. And it’s been hard to get your hands on things like fitness gear, sofas, and roller skates. That’s because America is reopening to a more expensive economy than the one that existed pre-pandemic.
  • The materials shortage has to do with several factors. The work-from-home economy placed unprecedented pressures on companies that both struggled to estimate demand and halted factory production for safety reasons. February’s Texas Freeze compounded these problems, suspending the oil sector and the manufacturers who rely on it.
  • Tight capacity, low inventory, and a fiscal stimulus have created the “perfect storm” in freight transport markets, according to a recent UBS note by a team led by Thomas Wadewitz. Supply deliveries are at their highest level in 40-plus years, Jan Hatzius wrote in a Goldman Sachs note. 

See full story here.

Categories: Business, Infrastructure, International

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