Supply chain pressures moderated in the United States in May, with gradually improving supply-side dynamics and cooling goods demand easing tensions, according to Oxford Economics.
Strains decreased most on the logistics front for a second straight month. Inflation pressures moderated, but prices stayed very high. Inventories marched higher, pushing stockpiles into better balance with demand. Stress on the labor front was mildly relieved as more workers sought jobs and upward pressure on wages cooled.
The number of cargo ships waiting to unload at Los Angeles and Long Beach was down for the fourth consecutive month. China's zero-COVID policy partly underpinned reduced backlogs, and moderating goods demand also gave shippers more breathing room. Lower shipment volumes via other modes of transportation corroborate less logistics stress.
Goods and services prices climbed more slowly last month. Commodities prices fell 10 percent on average, with metals leading the