NY Fed supply chain index eases in June

The United States — Federal Reserve Bank of New York reported that its Global Supply Chain Pressure Index fell to 1.25 in June from a revised 1.81 in May, as disruptions from the Middle East war began to fade. The index is now near levels last seen in late 2022, but remains well below the peak of 4.44 in December 2021. The easing is attributed to the partial reopening of the Strait of Hormuz, which had been nearly closed due to the conflict, allowing some transit of goods and energy. New York Fed President John Williams noted that inflation is elevated but expects moderation as supply disruptions resolve. Other data from the Institute for Supply Management showed ongoing but improving supplier delivery times. Brean Capital Chief Economist John Ryding commented that oil prices have retreated to pre-conflict levels and companies are managing disruptions.