Global supply stress worsened in April, NY Feds index shows – Reuters

REUTERS/Sarah SilbigerRegister now for FREE endless access to Reuters.comRegisterWASHINGTON, May 18 (Reuters) – Stress on worldwide supply chains intensified in April as coronavirus lockdown measures in China and the war in Ukraine lengthened delivery times, and air freight expenses between the United States and Asia rose, the New York Federal Reserve reported in its most current update to a worldwide index of supply problems.The increase in the index partly reversed the easing of supply issues seen in the previous 4 months, and, if it continues, possibly suggests more relentless inflation even as main banks struggle to control increasing costs. It increased sharply in February of 2020, as the coronavirus spread and federal governments imposed constraints to contain it, and has remained raised since.The index was first published in January and will now be launched monthly in an effort to track what has ended up being an essential problem in the worldwide healing from the pandemic, and in the efforts of the Fed and other major central banks to curb inflation.The U.S. main bank and some other organizations are currently raising interest rates or laying plans to do so in an effort to curb consumer and service demand for products and services.But they are likewise hoping supply chains rebound, and the rate of rate walkings and the supreme level of rates – and the amount of worldwide need and growth that needs to be cut – will depend partly on how fast that occurs.That has tossed a specific focus on whether Chinas rigorous COVID policies will be relaxed, and if so how fast the countrys output of manufactured goods and commercial products can recover.Register now for FREE unlimited access to Reuters.comRegisterReporting by Howard Schneider
Modifying by Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

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