JPMorgan’s Jamie Dimon says supply chain disruptions to end next year
JPMorgan CEO Jamie Dimon is optimistic that global supply chain woes will not be an issue in 2022. In his forecast, Dimon pinpointed that supply chain hiccups caused by the coronavirus pandemic would not be able to disrupt the economic recovery in the US and would not prevent consumers from spending money. Indeed, consumer demand is currently on the rise, while producers worldwide are facing significant difficulties created by supply chain disruptions. Executives of many companies indicate that disruptions could impact their earnings in the coming months.
“This will not be an issue next year at all. This is the worst part of it. I think great market systems will adjust for it like companies have. Keep in mind, the consumer’s buying other stuff. They can’t buy cars, they’re buying home improvement; they can’t travel internationally, they travel domestically. The spend level is very high,” Dimon said.
At the same time, Goldman Sachs expects spending on some services and non-durable goods to stay persistently below pre-pandemic trends. Meanwhile, shortages of semiconductors that are now disrupting the production of cars and equipment worldwide are suggested to last through the first six months of 2022.