A New Barometer of Global Supply Chain Pressures

Benigno, Gianluca; Groen, Jan J. J.; Noble, Adam I.; di Giovanni, Julian

Discussion Paper

A New Barometer of Global Supply Chain Pressures

Abstract: Supply chain disruptions have become a major challenge for the global economy since the start of the COVID-19 pandemic. Factory shutdowns (particularly in Asia) and widespread lockdowns and mobility restrictions have resulted in disruptions across logistics networks, increases in shipping costs, and longer delivery times. Several measures have been used to gauge these disruptions, although those measures tend to focus on selected dimensions of global supply chains. In this post, we propose a new gauge, the Global Supply Chain Pressure Index (GSCPI), which integrates a number of commonly used metrics with an aim to provide a more comprehensive summary of potential disruptions affecting global supply chains.

Keywords: supply chain disruptions; inflation; pandemic; COVID-19; global shocks;

JEL Classification: F0;