Iran war drives up global factory costs and supply delays
Rising energy prices and supply chain delays from the Iran war hit global factories in March. Euro zone activity rose while Asian manufacturing growth slowed.
Global manufacturing hubs are grappling with a significant surge in input costs and severe supply chain disruptions as the conflict involving Iran continues to destabilize international logistics. The manufacturing sector's fragile recovery is being threatened by a renewed energy shock, with prices for Brent Crude Oil and West Texas Oil rising as ships are forced to take longer, more expensive routes to avoid conflict zones.
Data from S&P GLOBAL INC indicates that recent improvements in manufacturing activity may be misleading. Supply shocks have lengthened delivery times, which traditionally signals high demand but currently reflects logistical bottlenecks.
