The article discusses the state of the supply chain during the Christmas season, highlighting challenges faced in recent years and improvements observed this year. Despite past issues like the pandemic, port congestion, and inflation, the current season appears more promising economically. The Lewis-Mertens-Stock index predicts a 1.8% growth compared to the previous year, supported by high-frequency economic data.

While per-person holiday spending has slightly decreased in recent years, the strong start to holiday shopping in 2023 resulted in a record number of consumers. Inventory levels fell in November as customers stocked up on holiday items. The supply chain is reported to be more stable this year, crucial as 40% of consumers consider switching brands if items are not delivered on time.

Major shipping companies, including FedEx, UPS, and the U.S. Postal Service, maintained on-time performance rates above 94% in 2022. The article suggests that while supply chains are normalizing, it’s too early to declare victory. However, resilient consumer spending, coupled with wage growth surpassing inflation, indicates continued economic strengthening into 2024. The article acknowledges future uncertainties but notes that, for now, the supply chain can take a well-deserved break.

Inspired by: https://www.scmr.com/article/supply-chain-set-to-deliver-this-christmas