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TARIFF FEARS DRIVE U.S. STOCKPILING IN AUGUST, WHILE MANUFACTURING WEAKENS IN EUROPE AND ASIA: GEP SUPPLY CHAIN VOLATILITY INDEX
GEP Global Supply Chain Volatility Index, a leading economic indicator based on a monthly survey of 27,000 businesses, slipped to -0.39 in August, from -0.35 in July, signaling rising spare capacity as global supply chain activity cooled.
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[{"type":"list","items":[{"val":[{"type":"text","content":"North America's supply chains get busier, with sharp stockpiling of components to guard against tariff-driven shortages and price inflation","length":143,"tagName":"p"}]},{"val":[{"type":"text","content":"Asia's manufacturers cut purchases, led by Japan and Taiwan, and to a lesser extent China","length":93,"tagName":"p"}]},{"val":[{"type":"text","content":"Europe weakens further, dragged down by Germany and a sharp downturn in the UK","length":78,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":314,"olType":false},{"type":"text","content":"CLARK, N.J., Sept. 11, 2025 /PRNewswire/ -- GEP Global Supply Chain Volatility Index, a leading economic indicator based on a monthly survey of 27,000 businesses, slipped to -0.39 in August, from -0.35 in July, signaling rising spare capacity as global supply chain activity cooled.","length":287,"tagName":"p"},{"type":"text","content":"The global figure concealed stark regional contrasts. North America was the outlier, with supply chains running close to full capacity as companies in the continent stockpiled raw materials and components to protect against tariff-driven shortages and delivery delays. This was particularly true for the US consumer goods sector, which includes industries such as food & beverages and household products.","length":408,"tagName":"p"},{"type":"text","content":"By contrast, Asia's index fell to a three-month low as purchasing activity weakened in China's consumer non-cyclicals sector, although the region's weakness was predominantly across Japan and Taiwan. Europe also deteriorated, with Germany's basic materials sector faltering and UK manufacturing plunging deeper into contraction. The index here (-0.90) signaled one of the steepest declines since 2024.","length":417,"tagName":"p"},{"type":"text","content":""So far tariffs have neither spurred growth nor triggered collapse," said Michael DuVall, GEP's global head of supply chain strategy. "Tariff uncertainty is no longer a temporary, it's a structural reality in the supply chain. Companies need to manage it by reinvesting in resilience, diversifying suppliers, and building critical capabilities like demand sensing to make faster, smarter decisions."","length":427,"tagName":"p"},{"type":"image","alt":"GEP Global ...