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FOR THE FIRST TIME IN NEARLY A YEAR, GLOBAL SUPPLY CHAINS ARE CLOSE TO FULL CAPACITY, SIGNALING RECOVERY IN MANUFACTURING IN FEBRUARY: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX
Notably, we continue to see evidence that the Red Sea attacks have had a negligible impact on global supply chains. The most visible effect was an uptick in transportation costs in January, but global logistics costs fell during February.
"Globally in February, we saw supply chains being more utilized, suppliers are busier, and input demand and manufacturing are turning a corner after nearly a year of low-capacity utilization," explained Mukund Acharya , vice president, consulting, GEP. "Suppliers to North America were the busiest globally last month, spurred by the Inflation Reduction Act and Bipartisan Infrastructure Law driving economic activity in construction, semi-conductors, and renewables."
Interpreting the data:
For more information, visit www.gep.com/volatility.
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.
For more information about the methodology, click here.
Full historical data dating back to January 2005 is available for subscription. Please contact economics@spglobal.com.
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. Fresh thinking, innovative products, unrivaled domain expertise, smart, passionate people — this is how GEP SOFTWARE™, GEP STRATEGY™ and GEP MANAGED SERVICES™ together deliver procurement and supply chain solutions of unprecedented scale, power and effectiveness. 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.
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