Page 14 - FIPI - Policy & Economic Report May 2026
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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET
Figure 6: Developed World PMI output and prices vs. monetary policy
Source: S&P Global Market Intelligence
Global Trade and Supply Chain Conditions
Global trade and supply chain conditions deteriorated further during May 2026 amid disruptions in
shipping routes, elevated freight costs, and delays in delivery schedules. S&P Global reported that supplier
delivery times lengthened to the greatest extent since August 2022, indicating renewed stress in global
supply chains.
Rising transportation and logistics costs contributed significantly to global inflationary pressures.
Businesses across several economies increased stock-building activity to mitigate supply disruptions and
protect against anticipated shortages of industrial inputs and raw materials.
Commodity-intensive sectors, particularly manufacturing and energy-intensive industries, experienced
rising input cost pressures. Elevated shipping costs and longer delivery timelines also impacted trade flows
and production schedules across regions.
The report highlighted that global trade conditions remain vulnerable to further disruptions, particularly
in energy and commodity supply chains, increasing uncertainty for industrial production and investment
activity globally.
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