IHS Chief Business Economist: Wages Are Growing

Chris Williamson from IHS Markit discusses the current economic situation, focusing on manufacturing PMI, supply chain constraints, and their impact on inflation and wage growth. He highlights worsening supply chain issues across the G4 economies, leading to unprecedented input cost inflation. The discussion also covers the role of China and Asia in these supply chain disruptions and debates the transitory nature of inflation, suggesting it may persist longer than expected.

What is the primary reason for the unusual lengthening of delivery times in the current manufacturing PMI data?

• Decreased consumer spending

• Improved manufacturing efficiency

• Supply chain disruptions

• Increased demand for products

How are the current supply chain constraints affecting prices in the US and Europe?

• Prices are decreasing due to lower demand

• Prices remain stable despite constraints

• Prices are increasing at unprecedented rates

• Prices are fluctuating unpredictably

What is a significant factor driving wage growth in the US and UK?

• Increased automation

• Labor shortages

• Decreased competition

• Government policies

What is the expected trend for CPI inflation in the coming months according to the discussion?

• A decrease in inflation

• Stable inflation rates

• Further increases in inflation

• Unpredictable inflation trends

What region is identified as a significant source of the current supply chain issues?

• North America

• Europe

• Asia

• Africa

What is the misconception about the current supply chain issues according to Chris Williamson?

• They are irrelevant

• They are beneficial

• They are transitory

• They are permanent

What economic measure is suggested to help improve the supply chain situation?

• Lower interest rates

• Reduced government spending

• Higher interest rates

• Increased taxation