Easing of lockdowns resulted in a modest economic recovery into Q3, but global trade continued to contract on reduced export demand and uncertainty over a second wave of COVID-19. The US economy continues to suffer under political uncertainty and a large increase in COVID-19 cases, the US dollar is finally showing cracks.
Below are some highlights from CBX Software’s Q3 2020 Retail Sourcing Report.
– Oil and commodity prices recovered into Q3, with fluctuations expected in Q3/4.
– The USD weakened significantly against the Euro and Yuan as the US economy suffers through the ongoing pandemic.
– China’s economy made strong gains against Q2, but still faces a decline in export orders.
– Most Asian low-cost sourcing countries continued to suffer through rising COVID-19 cases, low export demand and unemployment.
– E-commerce was the only bright spot for retail, seeing exponential growth as consumers upped their online spend.
Until we see obvious signs of a COVID-19 retreat, the global economy will continue to suffer. With uncertain odds of a dramatic shift happening in Q3 or Q4, companies that focus on strengthening their supply chains and digital operations will be well positioned for 2021.
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