World supply-chain hiccups brought on by the coronavirus have put a damper on financial progress, however the issue shall be a fleeting one, JPMorgan Chase CEO Jamie Dimon mentioned Monday
“I ought to by no means do that, however I will make a forecast,” Dimon mentioned at a convention held by the Institute of Worldwide Finance. “This is not going to be a difficulty subsequent 12 months in any respect. That is the worst a part of it, I feel nice market techniques will alter for it like firms have.”
The pandemic has laid naked how interconnected international provide techniques are. As an illustration, a scarcity of semiconductor chips has hampered producers of automobiles and electronics. A dearth of prepared staff has resulted in container ships idling at main ports and delays in delivery items to retailers.
Whereas some consultants consider some ache will proceed by means of 2023, Dimon has a rosier view. He mentioned Monday that he believes the economic system is about up for progress over the following few years. A part of that’s as a result of the energy of the patron, he mentioned.
“Take note, the patron’s shopping for different stuff,” Dimon mentioned. “They cannot purchase automobiles, they’re shopping for dwelling enchancment; they cannot journey internationally, they journey domestically. The spend stage could be very excessive.”
“Due to the energy of the patron, which is extraordinary, they’re spending 20% greater than they had been spending pre-Covid,” he added. “And firms are in nice form, they’ll proceed to spend at these ranges for a very long time.”
Provide chain disruptions might find yourself merely elongating the restoration slightly than derailing it, Dimon mentioned.
This story is creating. Please verify again for updates.
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