The big picture: The recovery is uneven across the globe, with Europe showing significant strength while parts of Asia continue to lag.

For the first time in over two years, European manufacturers operated at full capacity, emerging from a prolonged slump thanks to demand from U.S. customers and a rebound in German exports.
North American supply chains were also effectively at full capacity as companies ramped up purchasing of commodities, parts and raw materials.
Asia’s supply chains showed signs of recovery, but spare capacity remains, particularly in Southeast Asia and China where factory purchasing has been more subdued.

By the numbers: The GEP Global Supply Chain Volatility Index, which tracks business conditions, jumped to a 2025 high.

The global index rose to -0.17 in June from -0.46 in May. A reading of 0 indicates supply chains are at full capacity.
Europe’s regional index hit 0.01, up from -0.30, signaling its industrial sector is no longer in a downturn.
North America’s index rose to -0.06 from -0.24.
Despite the tariff situation, the report found no evidence of a dramatic escalation in cost inflation, and material and labor shortages remain low.

What they're saying: "In June, Europe shook off its long slump and global supply chains ran at full capacity — despite the uncertainty and on-and-off again tariffs,” said John Piatek, VP of consulting at GEP.

SURVEY: Tariff Pause Spurs Global Manufacturing Surge and Stockpiling

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