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China's Purchasing Growth and Global Supply Chain Trends

In September 2025, the manufacturing landscape witnessed significant shifts. China, the world's second-largest economy, emerged as a powerhouse in factory purchases, achieving the most substantial growth in global procurement activities since mid-2022. Meanwhile, North American manufacturers were affected by economic uncertainties, leading to a cooling in their activity levels. This article delves into the crucial developments outlined in the GEP Global Supply Chain Volatility Index, which is an authoritative measure of demand conditions, procurement challenges, transportation costs, and other vital factors in supply chains across various regions.

China's Manufacturing Boom

Chinese manufacturers reported a marked increase in purchasing activities during September, spearheading the strongest rise in procurement across Asia in ten months. This surge has enabled Asian supply chains to operate at near-full capacity, underscoring a robust revival in manufacturing and a renewed demand for inputs. The increased purchasing can be attributed to various factors, including strategic initiatives to ramp up production amid a global recovery phase.

North American Supply Chain Concerns

Contrasting with China's expansive growth, manufacturers in North America faced significant challenges during the same period. The GEP Index indicated that factories across the United States exhibited hesitation in stockpiling, largely due to tariff-related disruptions and an unsettled economic outlook. As a result, many manufacturers opted to reduce their inventory buffers rather than increase purchasing, revealing a cautious approach influenced by market uncertainties.

Europe's Tepid Recovery

Europe, on the other hand, has shown sluggish recovery trends. Key nations, including Germany, France, and Italy, reported declines in factory purchasing activity, reaching their weakest levels since March. The region continues to feel the strain of prolonged industrial downturns, reflecting a broader pattern of reduced manufacturing engagement as companies grapple with economic headwinds.

Key Statistical Insights

The GEP Global Supply Chain Volatility Index remained relatively stable in September, indicating that global supply chains still function below their maximum capacity. The Index value of -0.38 was only slightly changed from -0.39 the previous month, emphasizing ongoing constraints within global supply networks.

Demand Patterns

September marked a revival in factory purchasing, predominantly driven by the Chinese market. This upturn signifies heightened demand, which contrasts starkly with the more constrained trends observed in North America and Europe. The easing frequency of stockpiling globally suggests that manufacturers are becoming increasingly less concerned about inflation in purchasing costs or supply availability in the near term.

Material and Labor Shortages

Interestingly, global tracking of supply shortages illustrated a decrease in September, signaling improved availability of essential materials and components. Staffing issues that have historically been a major constraint also showed signs of alleviation, with reports of backlog increases falling to their lowest levels in six months.

Transportation Costs

Transportation expenses were notably stable, aligning with long-term averages during this timeframe. This consistency in costs is essential for manufacturers as they navigate the complexities of supply chain management.

Conclusion

The dynamics observed in September 2025 highlight a contrasting narrative between robust growth in China and cooling activity in North America and Europe. As supply chain leaders adapt to this “new normal,” characterized by rising prices and tariff pressures, it is crucial to develop and implement revised strategies that accommodate the evolving market landscape. With China leading the recovery, companies worldwide will need to reassess their operational strategies to remain competitive.

For further insights into global supply trends and to access detailed historical data, please visit GEP's website.