Core Insights - The GEP Global Supply Chain Volatility Index decreased to -0.39 in August from -0.35 in July, indicating rising spare capacity as global supply chain activity cooled [1][14] - North America showed strong supply chain activity, with companies stockpiling raw materials to mitigate tariff-related shortages, particularly in the US consumer goods sector [1][6] - In contrast, Asia's index fell to a three-month low, primarily due to weakened purchasing activity in China's consumer non-cyclicals sector, with Japan and Taiwan also experiencing declines [2][7] - Europe faced further deterioration, with Germany's basic materials sector struggling and UK manufacturing deepening its contraction, resulting in an index of -0.90, one of the steepest declines since 2024 [2][6] Regional Highlights - **North America**: Supply chains were nearly at full capacity as companies increased stock levels in response to recent orders and tariff concerns [6][7] - **Asia**: The index indicated rising spare capacity, with flat purchasing volumes in China, while South Korea, Indonesia, and India saw increased procurement activity [7] - **Europe**: The index continued to decline as factories reduced purchases of intermediate goods and destocked, highlighting the fragile nature of the region's industrial recovery [6][7] Expert Commentary - Michael DuVall, GEP's global head of supply chain strategy, noted that tariff uncertainty has become a structural reality, urging companies to invest in resilience, diversify suppliers, and enhance capabilities like demand sensing for better decision-making [3][6]