FARAAN: The U.S. Bank “US Bankport” emphasized that Yemeni attacks in the Red Sea are one of the reasons for the slowdown in the U.S. economy in the first three months of this year. According to the bank’s report, disruptions in ship movements in the Red Sea have led to longer transport times and additional costs, raising concerns that this issue and other factors may lead to a significant increase in commodity prices, potentially causing inflationary effects.
The report also explained, “Supply chain issues have affected a wider range of products, as some companies struggle to meet demand, obtain necessary parts for production, or find sufficient labor to meet production needs. Additionally, increased cargo traffic at some ports and a shortage of truck drivers for long-distance transportation pose challenges.”
The report states that the U.S. economy saw a decline in growth in the first three months of 2024, dropping from a 2.5% growth rate last year to an annual rate of 1.3%. The bank adds in its report: “Continued consumer demand and a strong labor market continue to influence economic growth, and investors in the coming months will closely monitor these data to determine their impact on company profits and stock prices.”
