The GEP Global Supply Chain Volatility Index fell to -0.35 in July 2025 from -0.17 in June, signaling increased spare capacity as U.S. manufacturers sharply slowed purchases after front-loading inventories during the tariff pause.

• North America’s index dropped to -0.33 (from -0.06), driven by reduced U.S. factory orders for materials and components.
• Europe’s index declined to -0.30 (from 0.01) as Germany’s rebound lost momentum, stalling the region’s fragile recovery.
• Asia’s index remained below trend due to weakness in Japan, South Korea, and Taiwan, though China saw a rebound in factory buying.
• The U.K.’s index fell to -0.58 (from -0.41), indicating continued elevated spare capacity.
• Inventories eased from June’s stockpiling, while labor and transportation costs remained stable without inflationary pressure.