The Suppliers Delivery Times Index reflects the amount of lead time for suppliers to deliver orders. Readings above 50 indicate a shortening of delivery times, below that threshold, a lengthening.
Conflicts in the Red Sea have been an issue for buyers in Europe and the UK as delivery times have hit new 1-year lows. Yemen-based Houthi rebels have been conducting attacks on cargo ships passing through the red sea on their way to the Suez Canal, which represents an important trade route between Europe, UK, and Asia.
To go further, the U.S. has struggled to stay at par with last year’s delivery times, although the Red Sea conflicts have little to do with America’s supplier delivery times. The U.S. is caught up in yet another feud with China which could be a contributing factor for delivery times on the index slipping just below 50. For Europe and the UK, the increased delivery times could manifest in the form of inflation for imported goods if this trend continues; this could negatively impact economic expansion in those respective areas.