NY Fed says supply chain pressures heated up in March

By Michael S. Derby

April 6 (Reuters) - Supply chain pressures heated up in March to levels last seen at the start of 2023, data released by the Federal Reserve Bank of New York said Monday.

In its latest Global Supply Chain Pressure Index, the bank said that the measure rose to 0.68, a modest rise from the 0.54 seen in February. A reading of zero indicates normal levels of supply pressures, with a positive number denoting mounting pressure.

The New York Fed did not provide any reason for the rise in the March reading, but it is almost certainly related to disruptions tied to the war in the Middle East that was started by the U.S.-Israeli attacks on Iran. Even with the rise in March, however, the most recent reading is well off the 4.49 reading seen in December 2021, when COVID-19 related pressures were bearing down on the economy.