The GEP Global Supply Chain Volatility Index was virtually unchanged at -0.38 in September (vs -0.39 in August), signaling continued underutilization of global supply capacity despite a sharp rebound in China-led factory activity, marking the strongest global manufacturing expansion since mid-2022.

• Chinese manufacturers significantly increased purchasing in September, driving Asia’s supply chains to near-full utilization — their busiest level since June 2022.

• North American manufacturers pulled back from August’s strong stockpiling, as tariff disruptions and a softer outlook curbed purchasing and inventory accumulation.

• Europe’s supply chains weakened further, with Germany, France, and Italy all reporting slower procurement, bringing the region’s index to its lowest since March.

• The U.K. index improved to -0.57 (from -0.90) but still indicated considerable manufacturing weakness.

• Global demand showed its strongest increase since June 2022, led by Asia, while North America and Europe saw limited improvement.

• Material shortages eased, with GEP’s tracker showing robust product availability and minimal sourcing issues.

• Global transportation costs remained stable and aligned with historical averages, and labor shortages were the lowest in six months, suggesting limited operational bottlenecks.

• GEP noted that global manufacturers are adapting to a “new normal” of persistent tariffs, higher costs, and slower growth, prompting a strategic shift away from waiting for stability toward active adjustment.