The Federal Reserve Bank of New York’s Global Supply Chain Pressure Index (GSCPI) decreased in February below the historical average for the index. The GSCPI was developed by the Federal Reserve to measure global supply chain pressures and indicate supply chain constraints that could predict negative economic conditions for US companies. February, 2023 was the first time in over a year the index sunk below historic averages.
This data indicates that companies are likely to experience a reprieve from the supply chain headwinds of the past few years. However, this is not the time to shift focus away form supply chain management. As companies move out of supply chain crisis response, now is the time to transform supply chains to be more resilient, flexible, and better prepared for the next challenge.
You can learn more about the GSCPI and see the most recent data on the Federal Bank of New York’s website:
https://www.newyorkfed.org/research/policy/gscpi#/interactive