A handful of data points indicate the easing of bottlenecks, despite persistent omicron effects.
The omicron variant added renewed stress to global supply chains through the busy holiday season, but signs of improvement in the US and Europe indicate the bottlenecks may soon be past their peaks, according to Bank of America.
“We are starting to see some signs of being past the peak in supply disruptions in the US,” said Ruben Segura-Cayuela, an economist with Bank of America, who described the improvements as “still very tentative” but beginning to form a positive trend. “The direction of movement is encouraging.
In January, the Fed’s monthly review of economic data known as the “beige book” has also employed fewer words that describe shortages, according to an analysis from Bank of America, further supporting the trend. “Given the relatively fast pass-through of market prices to corporate sector energy bills, we are somewhat hopeful that Euro area bottleneck signals will follow the US’s soon,” Mr Segura-Cayuela said.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Omicron economic hit not as bad as ‘lockdown pain’: DeloitteThe hit to supply chains and workers from the omicron virus wave will not derail the economy like earlier lockdowns, according to Deloitte Access Economics.
Read more »
US weekend storm: snow and ice forecast as far south as GeorgiaShoppers search for supplies as winter storm moves in from midwest before heading to north-east
Read more »
Naomi Osaka ready to defend Aus Open title after major change.naomiosaka has never successfully defended her grand slam titles but the reigning AustralianOpen champion says she is ready to handle the pressure on her fourth attempt. AusOpen 7NEWS
Read more »
Boris Johnson must resign in national interest, says Keir StarmerLabour leader increases pressure on PM as more Tory politicians join calls for him to quit
Read more »
International students welcome lifting of fortnightly cap on hours of paid workInternational students have welcomed the temporary lifting of a cap on the number of hours of paid work they can undertake per fortnight.
Read more »
On the face of the ‘happy slam’, a forced smileOPINION | The AustralianOpen will put on a brave face when it opens its doors on Monday morning, but its underlying condition will be brittle. The promoters are tense. The players are divided. The public are bemused. The mood is downbeat, writes GregBaum
Read more »