New York Fed draws up new supply chain index but does it capture the real issues?
January 10, 2021: The Global Supply Chain Pressure Index (GSCPI), a new barometer developed by the New York Federal Reserve, is an attempt to integrate commonly used metrics to provide a comprehensive summary of potential disruptions affecting global supply chains.
Among data points taken for the new index include the Baltic Dry Index , the Harpex container charter rate index, a mix of air freight prices and a host of Purchase Manager Index (PMI) surveys from around the world.
To estimate GSCPI, the authors had a data set of 27 variables: the three country-specific supply chain variables for each of the economies in the sample (the euro area, China, Japan, South Korea, Taiwan, the U.K., and the U.S.), the two global shipping rates, and the four price indices summarising airfreight costs between the U.S., Asia, and Europe.
