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TARIFFS BITE: NORTH AMERICAN AND ASIAN MANUFACTURERS RETRENCH IN APRIL, WITH GLOBAL MATERIAL PURCHASES DOWN AT ACCELERATED PACE: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX
"The first blows of the tariff war have landed on global manufacturers. Stockpiling is accelerating at a concerning rate and the first signs of manufacturers anticipating slower demand and supply shortages have emerged." said John Piatek , vice president, consulting GEP.
North American manufacturers sharply increased inventory buffers in April, warehousing front-loaded Q1 purchases in response to rising tariff concerns and a renewed focus on supply chain resilience.
Spare capacity across Asian supply chains increased significantly in April as factory slowdowns were evident in many of the region's major markets, led by China , Taiwan and South Korea .
In Europe , there were further signs that the continent's industrial downturn was cooling. Supply chain capacity went underutilized to the smallest degree in ten months, reflecting growth in Germany and France though risks remain if global trade conditions worsen.
The U.K. once again recorded significant manufacturing weakness, with supplier activity down at a rate which has rarely been surpassed in 20 years of data availability.
For more information, visit www.gep.com/volatility.
Note: Full historical data dating back to January 2005 is available for subscription. Please contact economics@spglobal.com.
The GEP Global Supply Chain Volatility Index is produced by S&P Global and GEP. It is derived from S&P Global's PMI® surveys, sent to companies in over 40 countries, totaling around 27,000 companies. The headline figure is a weighted sum of six sub-indices derived from PMI data, PMI Comments Trackers and PMI Commodity Price & Supply Indicators compiled by S&P Global.
A Supply Chain Volatility Index is also published at a regional level for Europe , Asia , North America and the U.K. For more information about the methodology, click here.
GEP® delivers AI-powered procurement and supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Headquartered in Clark, New Jersey , GEP has offices and operations centers across Europe , Asia , Africa and the Americas. To learn more, visit www.gep.com.
S&P Global (NYSE: SPGI) S&P Global provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction.
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