The GEP Global Supply Chain Volatility Index fell to -0.46 in May 2025 from -0.39 in April, indicating a further rise in spare capacity globally amid weak demand and trade tensions.

• Asia’s index dropped to -0.40 (from -0.32), the lowest since Dec 2023, driven by sharp pullbacks in Chinese factory procurement.
• North America’s index improved to -0.24 (from -0.34) as U.S. manufacturers increased purchases to front-load inventories ahead of tariffs.
• Europe’s index was little changed at -0.30, with modest recovery aided by fiscal stimulus, especially in Germany.
• The U.K. index rose to -0.97 (from -1.12) but remains indicative of deep underutilization in supply chains.
• Global inventories diverged: safety stockpiling rose in North America but remained historically low in Europe, while global material shortages remained below average, signaling adequate supply.