Severe Supply Disruptions Are Impeding Business Activity in the Region

Jaison Abel, Jason Bram, Richard Deitz and Jessica Lu

No 20211021, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: As the economy continues to recover from the pandemic recession, many businesses are struggling to keep up with surging demand amid widespread supply shortages and delays. While a rare phenomenon before the pandemic, supply chain disruptions have become increasingly common, with transportation of goods becoming especially tricky due to myriad issues such as clogged ports and difficulty finding truck drivers. Indeed, such supply disruptions are expected to continue into next year. Our October regional business surveys asked firms to what extent, if any, they are being affected by supply problems and what measures they have taken in response. Difficulty obtaining supplies was nearly universal among survey respondents, affecting about 80 percent of service firms and 95 percent of manufacturers. A large share of businesses in the region have responded to the disruptions by increasing their selling prices and scaling back their operations.

Keywords: pandemic; surveys; supply disruptions; COVID-19 (search for similar items in EconPapers)
JEL-codes: E2 R10 (search for similar items in EconPapers)
Date: 2021-10-21
New Economics Papers: this item is included in nep-mac
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