The GEP Global Supply Chain Volatility Index posted -0.39, which was little change from -0.43 in September.
The index tracks transportation costs, inventories and backlogs, shortages, and demand conditions, and is based on a monthly survey of 27,000 businesses in more than 40 countries. S&P Global and GEP, an artificial intelligence-powered procurement and supply chain solutions company, produces the index.
“October is the fourth straight month that suppliers worldwide reported spare capacity, with notable contractions in factory demand across North America and Europe, underscoring the challenging outlook for Western manufacturers,” Todd Bremer, GEP vice president, said. “President-elect (Donald) Trump inherits U.S. manufacturers with plenty of spare capacity while in contrast, China’s modest rebound and strong expansion in India demonstrate greater resilience in Asia.”
Other findings include:
Asia’s index was -0.20, the best of any global market. North America was the worst at -0.72, reflecting a substantial level of spare capacity with suppliers.
Stockpiling remains low as companies seek to preserve cash flow and tightly manage stocks.
There are robust supply levels for critical components and raw materials.
Factory employment levels have fallen in recent months.