In response to questions from the Dallas Fed, where winter storms earlier this year pummeled manufacturers of chemicals, plastics and other industrial ingredients, a metals maker said “it is beginning to feel like we are headed to a slowdown in a few months with inflation kicking in.”
A chemical maker added, “the potential for recession is ever increasing without major fiscal policy improvement.”
“In some cases the economy is clearly supply constrained, and some people are hanging back from working during Covid,” said Stephen Stanley, chief economist at Amherst Pierpont Securities. “But some of the supply disruptions are also a function of demand being unusually high.”
--With assistance from Brendan Murray.
This article was provided by Bloomberg News.