The GEP Global Supply Chain Volatility Index fell from -0.15 in December to -0.21 in January, indicating that supply chains eased slightly to start the year.

• The world’s supply chains are operating at full capacity, with the notable exception of Europe, which remains in a protracted industrial recession.
• Despite the possibility of tariffs and significant uncertainty surrounding their implementation, global manufacturers are not stockpiling inventories.
• Demand for raw materials is slowly recovering, but most of that recovery is in Asia and North America.
• Reports of shortages for key commodities were at their lowest in five years suggesting manufacturers are well stocked.
• Asian and North American industrial markets were tighter than those in Europe and the UK. Suppliers in Asia are “generally operating at full capacity.”