Business
U.S. FACTORY PURCHASES SLOWED SHARPLY IN JULY, DRIVING GLOBAL SUPPLY CHAIN SLOWDOWN: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX
Global supply chain activity fell in July as U.S. manufacturers sharply tapered purchases of materials and components after building inventories in June ahead of the end of the 'tariff pause,' according to the GEP Global Supply Chain Volatility Index, a leading indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses.
About this update from S&p Global Inc.
[{"type":"list","items":[{"val":[{"type":"text","content":"U.S. manufacturers slash purchases after front-loading inventories during the 'tariff pause'","length":100,"tagName":"p"}]},{"val":[{"type":"text","content":"Asia factories slow, driven by Japan, South Korea and Taiwan manufacturers","length":74,"tagName":"p"}]},{"val":[{"type":"text","content":"Europe's fragile recovery stalled in July as German growth weakened ahead of tariff agreements","length":98,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":272,"olType":false},{"type":"text","content":"CLARK, N.J., Aug. 13, 2025 /PRNewswire/ -- Global supply chain activity fell in July as U.S. manufacturers sharply tapered purchases of materials and components after building inventories in June ahead of the end of the 'tariff pause,' according to the GEP Global Supply Chain Volatility Index, a leading indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses.","length":467,"tagName":"p"},{"type":"image","alt":"GEP Global Supply Chain Volatility Index","displaySize":"","headline":null,"caption":"GEP Global Supply Chain Volatility Index","className":"","disableSlideshowImg":false,"size":{"original":{"width":400,"height":223,"url":"https://media.zenfs.com/en/prnewswire.com/b189868e5032ea6dbdd781aac8b8cc00"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/pR3xrjjLaewFSEf.7jxZYA--/YXBwaWQ9aGlnaGxhbmRlcjt3PTcwNTtoPTM5MztjZj13ZWJw/https://media.zenfs.com/en/prnewswire.com/b189868e5032ea6dbdd781aac8b8cc00","width":400,"height":223}},"href":"https://mma.prnewswire.com/media/2749232/GEP_Global_Supply_Chain_Volatility_Index_01.html","hrefExternal":true,"rel":"nofollow"},{"type":"text","content":"The index dropped to -0.35 from -0.17 in June, signaling increased spare capacity worldwide. The U.S. was the main driver, with North America's index falling to -0.33 from -0.06. The reversal follows a surge in June when U.S. factories front-loaded orders to beat anticipated tariff changes. In July, U.S. manufacturers sharply tapered purchases of inputs — materials, components and commodities — signaling expectations of slowing demand going forward.","length":467,"tagName":"p"},{"type":"text","content":""When we remove companies' front-loading inventories and rerouting go...