The GEP global supply chain volatility index fell

The GEP global supply chain volatility index fell to minus 0.46 in May from minus 0.39 in April, indicating increasing spare capacity across the world’s supply chains as a result of tariffs and tit-for-tat trade war.

The index, an indicator tracking demand conditions, shortages, transportation costs, inventories and backlogs based on a monthly survey of 27,000 businesses, is produced by S&P Global Ratings and GEP.

Global supply chain activity was driven lower by a deterioration across Asia, which reported the greatest degree of spare capacity in almost a year-and-a-half.

The quantity of raw materials and components purchased by Asian factories weakened for the second consecutive month in May, signalling stronger retrenchment.