The Federal Reserve Bank of New York introduces innovative Supply Availability Indexes to enhance the monitoring of supply chain disruptions and their economic impacts.
Supply Chain Data Enhancement
The Federal Reserve Bank of New York has announced the introduction of new “Supply Availability Indexes.” These indexes, which will be detailed in a blog post and incorporated into the bank’s monthly regional business surveys, aim to provide a more nuanced understanding of supply chain conditions. The indexes will be a part of the Empire State Manufacturing and Business Leaders surveys, offering insights into the availability of supplies and the extent of disruptions.
Tracking Inflation and Disruptions
The creation of these indexes is a response to the significant role supply chain pressures play in driving inflation. By offering a fresh metric to gauge the breadth of supply disruptions, the New York Fed aims to provide a clearer picture of supply availability improvements and the consequent inflationary pressures. This initiative will also allow for a comparison of U.S. supply chain trends with global patterns, using the bank’s Global Supply Chain Pressures Index as a benchmark. The new indexes come at a time when supply chain pressures, which spiked during the COVID-19 pandemic, have begun to ease, contributing to a reduction in inflation from previous highs.
