The New York Fed said longer delivery times, higher prices, and increases in employment are all expected in the months ahead, while capital spending plans remained firm. "Much improved health conditions and the removal of most pandemic restrictions will fuel a strong revival for in-person services, but there's still plenty of goods demand to keep manufacturing growing at a hearty pace," said Oren Klachkin, Lead U.S. "The war in Ukraine and the worst outbreak of Covid in China since March 2020 will worsen logistics bottlenecks and stoke more inflationary pressures, aggravating already severe stress in supply chains."