The GEP Global Supply Chain Volatility Index fell from -0.21 in January to -0.45 in February, the lowest level since July 2023, indicating that capacity became increasing underutilized across the globe.

• Much of the increase came from increased stockpiling of goods ahead of an anticipated rise in costs from US tariffs.
• In stark contrast, Mexican and Canadian manufacturers harshly reduced their purchases in response to a rapid reduction in exports as U.S. companies refrained from placing orders due to the threat of tariffs and trade policy uncertainty.
• Asia supply chains continue to be at full capacity in February, as was the case at the start of the year, making them the most active globally. Factories in parts of the region such as China, Taiwan and India reported strong export growth.

• Europe and the UK removed an increase in slack in supply conditions.
• In North America, the front running of tariffs caused US supply chains to be busier, but that was offset by lower activity in Canada and Mexico.