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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
GLOBAL
MNI (London)
Supply chain pressures eased again globally in August, whilst inventories remain historically high as demand falters, according to the latest round of global manufacturing PMIs. Although indications of slowing demand highlights global recession risks, easing in supply-driven inflation will come as welcome news for central banks as it will relieve upside pressure on inflation.
- A slowdown in client demand has relieved pressure on manufacturing bottlenecks. Although production activity remained relatively buoyant in August, this reflected a reduction of backlogs last month as manufacturers worked through existing orders rather than new ones. So to an extent, elevated production readings masked waning final demand.
- A reduction in elevated inventory levels will translate into downwards price pressure going forward. Firms will find themselves forced to engage in lowering prices on existing inventory in order to move products.
- The easing trend in overall supply chain bottlenecks is set to continue. The NY Fed Global Supply Chain Index (which in part incorporates supply chain-related compoents from PMI surveys) has been easing since its December 2021 peak and while still elevated on a historic basis, remains set to continue this trajectory.
- Further Chinese lockdowns and sanctions on trade with Russia continue to pose risks to supply chains headed into year-end.
Source: MNI / Bloomberg / S&P Global / NY Fed
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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