The GEP Global Supply Chain Volatility Index edged up slightly to -0.33 in October 2025 (from -0.39 in September), indicating continued underutilization of global supply capacity as manufacturers scaled back orders and inventories amid weak demand.

• North America’s index dropped to -0.45 (from -0.25), the lowest since March, reflecting the steepest reduction in raw material purchases since May and signaling weaker production ahead.

• Asia’s index declined sharply to -0.30 (from -0.06) as reduced factory buying in China offset strength in India, leaving the region with increased spare capacity.

• Europe’s index improved to -0.25 (from -0.53), a three-month high, but still indicated subdued manufacturing activity as firms in Germany, France, Italy, and the U.K. limited material purchases.

• The U.K. saw a notable pullback, with its index falling to -0.80 (from -0.57), pointing to a sharper contraction in supplier activity.

• Global demand weakened as factory purchasing reversed September’s rebound, while inventory accumulation remained historically low, showing limited concern over shortages or price risks.

• Material shortages stayed well below trend, suggesting ample product availability and minimal sourcing challenges across industries.

• Labor-related capacity constraints rose slightly to a four-month high, though remained near long-run averages, while transportation costs edged down to just below historical norms.

• GEP noted that with widespread spare capacity and reduced stockpiling, supply chains face little risk of goods price inflation outside of tariff impacts.