Global Supply Chains Trust in a “Stabilized” Economy

This is an excerpt of the original article. It was written for the December 2019 edition of Supply Chain Management Review. The full article is available to current subscribers.

December 2019

If it’s December, it must be time for our annual Executive Guide to Supply Chain Resources. This is a comprehensive guide to services, products and educational opportunities targeted specifically to supply chain professionals. As with years past, we’re also featuring several articles we trust will offer food for thought in your supply chain in the coming year.

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The latest IHS Markit Business Outlook survey signals that U.S. private sector firms are less optimistic toward the outlook for business activity over the coming 12 months than in June.

According to economists, the net balance of firms expecting a rise in output has dropped from +16% in June to +10% in October. That’s the lowest for three years. The net balance of firms forecasting growth is also below the global (+14%) and developed market (+12%) averages.

Both manufacturing and service sector firms expressed a lower level of positive sentiment toward future output than earlier in the year.

Confidence is generally linked to new export opportunities, with some companies planning on expanding their reach following ongoing trade tensions. At the same time, some private sector firms are suggesting that they have attracted new clients as more customers switch to domestically produced goods.

Inventory unleashed

Companies are also predicting that greater marketing activity and the release of new products and services will boost sales over the next 12 months.

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