๐Ÿ“ˆ TKer by Sam Ro

๐Ÿ“ˆ TKer by Sam Ro

The indisputably good force behind the supply chain nightmare ๐Ÿš›

It's fanning inflation. But it's a good thing.

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Sam Ro, CFA
Oct 22, 2021
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Containers are seen at a port in Newark of New Jersey, United States on October 17, 2021. (Source: Tayfun Coskun/Anadolu Agency via Getty Images)

One of the most telling economic indicators is suppliersโ€™ delivery times. They represent the amount of time between a business placing an order for stuff and when that stuff eventually gets dropped off.

Longer delivery times are a pretty reliable predictor of inflation heating up. Itโ€™s also a sign that demand in the economy is robust.

According to a new report from IHS Markit, these delivery times are the longest on record.

This isnโ€™t exactly breaking news. There are headlines and images about supply chain bottlenecks everywhere. And TKer subscribers got updates on inflation surges here and here.

But itโ€™s worth stressing the indisputably good economic force that got us here: demand.

Demand is a high-quality problem

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