Supply Disruption

Supply disruption means an event that interrupts the normal production or delivery of goods and services. In simple terms, a supply disruption happens when businesses cannot make or deliver enough of something. Supply disruptions are important because they can create shortages, raise prices, delay production, and increase inflation pressure. They can be caused by wars, natural disasters, strikes, transportation problems, or factory shutdowns. For example, if a major oil facility stops production, the supply of oil may fall and prices may rise. A supply disruption is not the same as weak demand. Supply disruption is about problems providing goods or services, while weak demand is about buyers wanting less.