Supply-chain shock raises risk of more volatile economic cycles


Source: newsbinding.com newsbinding.com

Key Topics in this News Article:

News Snapshot:

The writer is co-founder of Absolute Strategy Research The world is witnessing probably the biggest shock to supply chains since British logistics consultant Keith Oliver is thought to have first coined the term in 1982. If companies respond by raising inventory levels to ensure they have adequate stocks of materials, then we should start to prepare ourselves for more volatile business cycles. Some argue that we are close to “peak” supply-chain stress. The US consumer’s demand for goods may soon begin to revert to its pre-Covid-19 trend as spending gradually rebalances from goods towards services. Moreover, global business survey indicators...