Where is all the stuff I ordered?

According to the recently released IHS Markit Purchasing Managers’ Index (PMI) report--which indicates the overall health of global economies, average supplier delivery times have lengthened to record levels. Many of us have felt these delays, as it has taken longer and longer to get certain items.


Blog Pic 1

Data: IHS Markit; Chart: Axios Visuals

x-axis: PMI         y-axis: year


What is the cause: The economic rebound since spring of last year has been accompanied by surging demand for finished goods. There is still not enough supply of many of the parts needed to complete the manufacturing process (ex: computer chips), and supply chain issues are persisting with new COVID variant outbreaks disrupting manufacturing around the world. Adding to this, shipping continues to struggle with logistical issues stemming from the pandemic.


Why it matters: Businesses are struggling to get stuff delivered from their suppliers, and it’s having an impact on economic growth and inflation.

  • U.S. manufacturing growth slowed to a four-month low, and services growth decelerated to an eight-month low.
  • New orders are outpacing manufacturing output, which has helped to drive inflation as prices charged by U.S. producers reached a new record high


Despite these concerns, U.S. companies remained upbeat regarding the outlook for output over the coming year…it just may take longer…and cost a bit more. But this is unlikely to have a major impact on most economies and markets. And competitive pressures should drive solutions to these shortages and supply chain challenges.


Symmetry Partners, LLC, provides this communication on this site as a matter of general information. Information contained herein, including data or statistics quoted, are from sources believed to be reliable but cannot be guaranteed or warranted. Nothing on this site represents a recommendation of any particular security, strategy, or investment product. The opinions of the author are subject to change without notice. Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions. All content on this site is for educational purposes and should not be considered investment advice or an offer of any security for sale. Please be advised that Symmetry Partners does not provide tax or legal advice and nothing either stated or implied here on this site should be inferred as providing such advice. Symmetry Partners does not approve or endorse any third party communications on this site and will not be liable for any such posts.

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