Indicators point to easing US supply chain stresses

Supply chain conditions in the US improved in August. Transportation strains eased as shipping gridlocks loosened, inflation pressures declined, labor market dynamics improved, and moderating demand put less stress on the economy’s productive capacity. On the downside, inventories unwound the progress they had made in July.

What you will learn:

• Regional Fed surveys and ISM prices-paid indexes signal relief on the price front. The price of some key commodities, including oil and steel, declined last month.
• Cargo ship backlogs off the coast of Southern California fell to their lowest in nearly two years, though congestion rose on the East Coast.
• Stress in labor markets also eased as the economy created a hearty 315k jobs, the labor force participation rate rose to its highest level since March, and overtime hours declined.