Global supply chains remained slack and underutilised in November 2025, according to the latest GEP Global Supply Chain Volatility Index, a key barometer of global industrial and logistics conditions. The index — which measures demand conditions, input purchases, inventories and transportation costs across more than 40 countries — reported a negative headline reading of –0.29, signalling that supply chain capacity was not stretched and that producers continued to limit activity.
The persistent slack reflects weaker manufacturing demand and cautious procurement behaviour as businesses prepare for the year ahead. In North America, the regional index plunged to around –0.53, its lowest such reading since March, driven by a sharp cutback in input purchases as manufacturers pull back on orders ahead of 2026. European and UK supply chains also showed ongoing underutilisation, while Asian markets remained subdued overall — although some Southeast Asian economies showed relative resilience.
Key indicators show that factory buying for raw materials and components slowed globally, while inventory stockpiling and shortages remained historically low, underscoring a muted pricing environment for suppliers and logistics providers. With ample spare capacity and subdued demand, companies may enjoy stronger leverage when negotiating freight, material and service contracts in the near term, barring tariff-related cost pressures.
For logistics planners and supply chain managers, the continued slack in supply chains suggests a cautious economic backdrop entering 2026, with weaker industrial activity likely to keep freight volumes and transportation costs under watch — even as pockets of strength persist in select regional markets.
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