Trade Isn’t Slowing Down, Even with Suez Canal Blockage
The drama in the Suez Canal added insult to injury with global trade already accelerating at an unprecedented rate. U.S. factories are struggling to keep up with expansion, which has been largely driven by American consumers ready to spend stimulus funds putting pressure on global supply chains.
According to an article from the Wall Street Journal, U.S. factory production and product sales jumped in March in reference to the Institute for Supply Management’s index of factory activity:
“…its index of factory activity—a measure that takes into account new orders for goods, production, inventory levels and commodity prices—rose to 64.7 last month from 60.8 in February. Any figure above 50 suggests industry expansion.”
Even with continuing supply chain constraints, global trade isn’t easing any time soon. In fact, the WTO estimates that North American demand for imports will rise by a figure of 11.4% this year, which also takes into account Biden’s massive $1.9 trillion support package.
Overall, the good news is that there is a clear recovery brewing after the effects of the COVID-19 pandemic. That said, the real question is if global supply chains will be able to keep up with increased consumer demand.
To read the full Wall Street Journal article, click here.