A negative supply shock in one sector can lead to an overall negative demand shock
If an economic sector suffers a negative supply shock, its production will fall, and the other economic sectors that are the suppliers of this sector that suffers the negative supply shock (which provide it with its intermediate consumption) will suffer a fall in demand. It is through this mechanism that a negative sectoral supply shock can become an overall negative demand shock. We seek to determine whether this mechanism is currently at work due to the negative supply shock that industry is suffering (rise in commodity prices and various intermediate consumption): is it turning into a negative demand shock for the rest of the economy (services) and for the economy as a whole? The answer is yes, since spring 2021, even though this transmission is weak.