The US January 2022 trade deficit rocketed to a second straight record monthly high of $107.6 billion. For 2021, the US trade deficit with China climbed to a record $355.3 billion.
Implication: US companies need to manufacture more product and components here - reshoring.
The ICE US Dollar Index (USDX), which tracks the currency against a basket of major global currencies, exploded by 2.1% last week alone. A higher value of the US dollar makes American agricultural and manufactured goods less competitively priced abroad.
Implication: The value of the US dollar will continue to rise as the Russia-Ukraine war continues putting a damper on US exports.
In terms of 2022 challenges for their firm, more than four of 10 Heartland supply managers, or 43.5%, ranked supply disruptions as tops, more than one-third, or 34.8%, indicated finding and hiring qualified workers as tops, and approximately 17.4% of supply managers named rising input prices as the top challenge.
Implication: These challenges are unlikely to improve through 2023.
Based on input from the March 2022 Economic Trends report, written by:
Professor Ernie Goss, PH.D., Creighton University
Jack MacAllister Chair in Regional Economics
Implications by IBNewsmag