CHINA DRIVES STRONGEST GROWTH IN GLOBAL FACTORY PURCHASING SINCE MID-2022, WHILE NORTH AMERICAN MANUFACTURERS COOL IN SEPTEMBER: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX

Core Insights - The GEP Global Supply Chain Volatility Index showed little change in September, indicating that global supply chains are still operating below full capacity [1][4] - Chinese factories reported a significant increase in purchasing, leading to a rise in global manufacturing procurement activity, while North American supply chains faced challenges due to tariff-related delays and economic concerns [2][7] - European supply chains remained underutilized, with manufacturers in key countries reducing purchasing and stockpiles, marking the weakest activity level since March [3][8] Regional Key Findings - Asia: Chinese manufacturers increased purchasing sharply in September, resulting in the busiest level for Asia's supply chains since June 2022 [7][8] - North America: Manufacturers were hesitant to stockpile further due to economic outlook concerns, with tariff-related disruptions impacting manufacturing activity [8] - Europe: Supply chain activity in Germany, France, and Italy declined, leading to a six-month low in the region's index [8] Demand and Inventory Trends - September saw a revival in factory purchasing, particularly in Asia, driven by increased demand in China [8] - The frequency of global manufacturers stockpiling due to price or supply fears decreased, indicating reduced concerns about inflation or item availability [8] - Global supply shortages tracker showed a decrease, suggesting robust item availability for manufacturers [8][14] Transportation and Labor Insights - Global transportation costs remained in line with historically normal levels during September [14] - Staffing capacity was not a constraint for global manufacturers, with reports of backlogs due to labor shortages falling below the long-term average [14]