Home Business news Supply chain bottlenecks hit manufacturers as recovery drives demand – business live

Supply chain bottlenecks hit manufacturers as recovery drives demand – business live

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Rolling coverage of the latest economic and financial news

7.48am BST

German carmakers are also being hit by supply problems – particularly for semiconductors.

The IFO institute reports that conditions improved across Germany’s Automotive Industry, sending its gauge of business conditions to a two-year high.

“Carmakers have now overcome the slump they suffered due to the coronavirus”

At the moment, the main issue is problems with intermediate products, which were reported by 60.4 percent of the companies.

That figure compares to only 5.8 percent in July 2020; back in April 2020, it was as high as 42.0 percent. Several automotive plants have now announced they will introduce short-time work due to the shortage in silicon chips.

Related: Jaguar Land Rover to suspend work at UK plants amid computer chip shortage

Related: Mini will pause Oxford production line due to computer chip shortage

7.42am BST

Overnight, lumber prices hit a new record high, highlighting the squeeze on raw materials.

The spiraling demand for lumber – notably in the US – means a hefty bill for new home builders (as most new-build homes in America are wood framed). Ditto for those extending their homes, or even doing DIY jobs .

They are feasting on a glut of cheap pine trees in the U.S. South while their finished products like lumber and plywood are flying off hardware-store shelves and being bid up by home builders.

Lumber futures delivery later this month ended Monday at $1,575.60 per thousand board feet, a record and more than four times the typical price this time of year. Futures rose by the daily maximum allowed by the Chicago Mercantile Exchange during nine of April’s 21 trading sessions.

The price of Lumber closed at another all-time high, more than quadrupling over the last year. pic.twitter.com/GDXqp2fB8c

US Inflation Expectations hit 2.6%, their highest level since 2008. pic.twitter.com/yeVKsKqwXf

7.36am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

US ISM Manufacturing declined to 60.7 in Apr/21 from 64.7 in Mar.
Decline is attributable mainly to supply constraints, as indicated by sharp increase in price paid and a decline in inventory levels and suppliers’ delivery. pic.twitter.com/fYnTxxGmRZ

[Purchasing managers] “reported that their companies and suppliers continue to struggle to meet increasing rates of demand due to coronavirus impacts limiting availability of parts and material.”

“What really stands out in the April report is just how broad the squeeze in supply of key commodities and intermediate inputs has become, with respondents’ comments suggesting supply shortages are affecting almost every industry.

That is reflected in the supplier deliveries time balance which, though it fell to 75.0 last month from 76.6, remains unusually elevated.”

The Baltic Dry Index, once widely seen as a proxy for global growth and #commodity demand, has risen more than 650% from its #Covid low to the highest level in almost 11 years! pic.twitter.com/fcE9wLtRvP

Commodities prices jumped to new highs amid oil-demand optimism. #OOTT #METL https://t.co/1vUJrlhFqW

Continue reading…Rolling coverage of the latest economic and financial news 7.48am BST German carmakers are also being hit by supply problems – particularly for semiconductors.The IFO institute reports that conditions improved across Germany’s Automotive Industry, sending its gauge of business conditions to a two-year high.“Carmakers have now overcome the slump they suffered due to the coronavirus”At the moment, the main issue is problems with intermediate products, which were reported by 60.4 percent of the companies.That figure compares to only 5.8 percent in July 2020; back in April 2020, it was as high as 42.0 percent. Several automotive plants have now announced they will introduce short-time work due to the shortage in silicon chips. Related: Jaguar Land Rover to suspend work at UK plants amid computer chip shortage Related: Mini will pause Oxford production line due to computer chip shortage 7.42am BST Overnight, lumber prices hit a new record high, highlighting the squeeze on raw materials.The spiraling demand for lumber – notably in the US – means a hefty bill for new home builders (as most new-build homes in America are wood framed). Ditto for those extending their homes, or even doing DIY jobs .They are feasting on a glut of cheap pine trees in the U.S. South while their finished products like lumber and plywood are flying off hardware-store shelves and being bid up by home builders. Lumber futures delivery later this month ended Monday at $1,575.60 per thousand board feet, a record and more than four times the typical price this time of year. Futures rose by the daily maximum allowed by the Chicago Mercantile Exchange during nine of April’s 21 trading sessions. The price of Lumber closed at another all-time high, more than quadrupling over the last year. pic.twitter.com/GDXqp2fB8cUS Inflation Expectations hit 2.6%, their highest level since 2008. pic.twitter.com/yeVKsKqwXf 7.36am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.US ISM Manufacturing declined to 60.7 in Apr/21 from 64.7 in Mar.Decline is attributable mainly to supply constraints, as indicated by sharp increase in price paid and a decline in inventory levels and suppliers’ delivery. pic.twitter.com/fYnTxxGmRZ[Purchasing managers] “reported that their companies and suppliers continue to struggle to meet increasing rates of demand due to coronavirus impacts limiting availability of parts and material.”“What really stands out in the April report is just how broad the squeeze in supply of key commodities and intermediate inputs has become, with respondents’ comments suggesting supply shortages are affecting almost every industry.That is reflected in the supplier deliveries time balance which, though it fell to 75.0 last month from 76.6, remains unusually elevated.”The Baltic Dry Index, once widely seen as a proxy for global growth and #commodity demand, has risen more than 650% from its #Covid low to the highest level in almost 11 years! pic.twitter.com/fcE9wLtRvPCommodities prices jumped to new highs amid oil-demand optimism. #OOTT #METL https://t.co/1vUJrlhFqW Continue reading…