The demand for commodities, raw materials, and components is rising globally in line with its long-term trend. According to a poll conducted by S&P Global and GEP, the business cycle is about to see an upturn in global manufacturing. Asia is driving the growing trend, especially China, India, and South Korea.
Businesses’ inventory cycles have stabilised, according to S&P Global, which also notes that there is a balance between aggressive destocking and excessive stockpiling. There are very few reports of shortages, and the world’s supply of items is still plentiful. Due to a lack of workers, global suppliers are facing backlogs, which suggests that capacity needs to be increased. The cost of transportation is steady worldwide.
The S&P Global index showed positive growth in May 2023, the first since March 2023, suggesting that international suppliers are filling orders to the fullest extent possible. The global industrial demand boom drove this jump, causing manufacturers to expand their procurement of components and raw materials.
