Global Supply Chain Volatility Index
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To log in to this site, your browser must accept cookies from the domain www.gep.com.June 2024
Global: 0.13
Asia: +0.35 +0.16
EU: -0.13 0.00
NA: -0.11 -0.20
UK: +0.49 +0.34
Asia’s Suppliers Growing at the Fastest Pace Since Early 2023, as Global Manufacturing Gathers Further Momentum in June: GEP Global Supply Chain Volatility Index
- Global suppliers report capacity pressures, with index in positive territory for a second consecutive month
- Asian manufacturing growth accelerating in China, Taiwan, Vietnam and India
- In contrast, demand at North American suppliers fell slightly because of lower orders, indicating a tightening economy
- Transportation costs rise to 20-month high, as greater activity drives up shipping and container rates more..
GEP Global Supply Chain Volatility Index
0.13
June 2024
Asia: +0.35
EU: -0.13
NA: -0.11
UK: +0.49
Interpreting the data:
When the SCVI > 0, supply chain capacity is being stretched. The further above 0, the more stretched supply chains are.
When the SCVI < 0, supply chain capacity is being underutilized. The further below 0, the more underutilized supply chains are.
ASIA: Factory purchasing rises to 16-month high
EUROPE: Slack in European manufacturing persists
UK: Capacity pressures at UK suppliers
NORTH AMERICA: Suppliers operating at full capacity
The next release of the GEP Global Supply Chain Volatility Index will be 8 a.m. ET, August 12, 2024.
About the GEP Supply Chain Volatility Index
The GEP Global Supply Chain Volatility Index is produced by S&P Global and GEP. The GEP Global Supply Chain Volatility Index is derived from S&P Global’s PMI™ surveys, sent to companies in over 40 countries, totalling around 27,000 companies. These countries account for 89% of global gross domestic product (GDP) (source: World Bank World Development Indicators).
The headline figure is the GEP Global Supply Chain Volatility Index. This a weighted sum of six sub-indices derived from PMI data, PMI Comments Trackers and PMI Commodity Price & Supply Indicators complied by S&P Global.
The GEP Global Supply Chain Volatility Index is calculated using a weighted sum of the z-scores of the six indices. Weights are determined by analysing the impact each component has on suppliers’ delivery times through regression analysis.
The six variables used are 1) JP Morgan Global Quantity of Purchases Index, 2) All Items Supply Shortages Indicator, 3) Transport Price Pressure Indicator and Manufacturing PMI Comments Tracker data for 4) stockpiling due to supply or price concerns, and backlogs rising due to 5) staff shortages and 6) item shortages.
A value above 0 indicates that supply chain capacity is being stretched and supply-chain volatility is increasing. The further above 0, the greater the extent to which capacity is being stretched.
A value below 0 indicates that supply chain capacity is being underutilized, reducing supply-chain volatility. The further below 0, the greater the extent to which capacity is being underutilized.
A Supply Chain Volatility Index is also published at a regional level for Europe, Asia, North America and the UK. The regional indices measure the performance of supply-chains connected to those parts of the world.
For more information on PMI surveys, PMI Comments Trackers and PMI Commodity Price & Supply Indicators, the GEP Supply Chain Volatility Index methodologies, please contact economics@ihsmarkit.com.
