Manufacturers noted supply shortages at levels not seen since late 2022, indicating that supply chain constraints are set to extend into the third quarter at minimum
Firms kept adding to safety stocks, supporting another period of robust demand for raw materials, commodities and intermediate goods
Input demand held firm in North America and Asia, while European producers scaled back activity in June

, /PRNewswire/ -- The GEP Global Supply Chain Volatility Index, a leading measure of supply chain conditions based on a monthly survey of 27,000 businesses, indicated that global supply chain strains stayed high in June even as oil prices and transport costs eased, amid ongoing uncertainty over the US-Iran ceasefire.

Manufacturers reported rising backlogs from shortages of key inputs at the highest rate since late 2022. This points to supply chain bottlenecks likely continuing into at least the third quarter while companies await materials to finish customer orders.

Seeking protection from additional disruption, manufacturers kept expanding buffer inventories during June. Indications of safety stockpiling rose further and stayed at their peak since January 2023.

Demand for raw materials, commodities and intermediate goods remained solid in North America and Asia, supporting views that supply chain activity will stay elevated in coming months as stocks are rebuilt and orders completed. By comparison, input demand softened across Europe.

"Higher stockpiling and ongoing order backlogs lead to one clear takeaway: businesses still lack confidence that the global trading environment will stay steady," said John Piatek, vice president, consulting, GEP. "Even with lower oil prices and reduced transportation costs, companies are purchasing ahead because they anticipate more disruption. While this supports the global economy in the short term, it also reveals that manufacturers remain highly cautious and are preparing for further issues in international trade."

Interpreting the data:
Index greater than 0, supply chain capacity is being stretched. The further above 0, the more stretched supply chains are.
Index less than 0, supply chain capacity is being underutilized. The further below 0, the more underutilized supply chains are.

JUNE 2026 REGIONAL KEY FINDINGS

ASIA: Index declined to 1.95 from 2.96, marking its lowest point since March. Reduced transport cost inflation contributed significantly to the drop in June.
NORTH AMERICA: Index eased to 1.17 from 1.69, also a three-month low. North American goods producers increased purchasing sharply, however, in response to item shortages and growing backlogs.
EUROPE: Index slipped to 1.13 from 1.43. Factories in Europe cut buying volumes to the largest extent since the start of the Middle East conflict, though data shows strong inventory growth.
U.K.: Index declined to 1.05 from 1.34, its lowest level since April as U.K. manufacturers pulled back.

JUNE 2026 KEY FINDINGS

DEMAND: Purchasing of raw materials, commodities and intermediate goods needed by manufacturers to produce stayed strong in June. North America and Asia drove this strength as European factories reduced activity. In the US, input buying rose at its quickest pace since April 2022. Japan, China and Vietnam led accelerated purchasing growth in Asia.
INVENTORIES: Reports of rising stockpiled materials due to price or supply concerns increased again in June and reached their highest since January 2023, indicating sustained growth since the Middle East conflict began. The data suggest procurement managers globally are maintaining surpluses to guard against shortages and inflation.
MATERIAL SHORTAGES: The items in short supply indicator fell in June, showing some easing of shortages worldwide. Even so, supply issues remained elevated by historical standards, with the underlying index well above its long-term average. Notably, work backlogs have increased sharply due to insufficient item availability.
LABOR SHORTAGES: Manufacturing workforces are not limiting capacity, as reports of backlogs rising due to labor shortages aligned with historically average levels.
TRANSPORTATION: With June bringing a sharp drop in global oil prices, the transportation cost indicator declined accordingly. However, excluding April and May, transportation costs were their highest since June 2022 and still elevated by historical standards.

Note: Full historical data dating back to January 2005 is available for subscription. Please contact the provider for details.

The next release of the GEP Global Supply Chain Volatility Index will be 8 a.m. ET, Aug. 12, 2026.

About the GEP Global Supply Chain Volatility Index

The GEP Global Supply Chain Volatility Index is produced by S and P Global and GEP. It is derived from S and P Global 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 and Supply Indicators compiled by S and P Global.

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 U.K. For more information about the methodology, refer to the provider resources.

About GEP

GEP delivers AI-native 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. Our customers are the world's best companies, including more than 1,000 Fortune 500 and Global 2000 industry leaders who rely on GEP to meet ambitious strategic, financial and operational goals. A leader in multiple Gartner Magic Quadrants, GEP cloud-native software and digital business platforms consistently win awards and recognition from industry analysts, research firms and media outlets, including Gartner, Forrester, IDC, ISG, and Spend Matters. GEP is also regularly ranked a top procurement and supply chain consulting and strategy firm, and a leading managed services provider by ALM, Everest Group, NelsonHall, IDC, ISG and HFS, among others. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit the company website.

Media Contacts

Derek Creevey	Joe Hayes	S and P Global Market Intelligence
Director, Public Relations	Senior Principal Economist	Corporate Communications
GEP	S and P Global Market Intelligence	Email contact available upon request
Phone: +1 646-276-4579	Phone: +44-1344-328-099
Email contact available upon request	Email contact available upon request