Manufacturer purchasing falls sharply amid tariff concerns

Manufacturer purchasing in April – specifically in North America and to a lesser extent in Asia – saw the sharpest drop of 2025 as factories scaled back in anticipation of weakened demand due to tariffs, according to the GEP Global Supply Chain Volatility Index.

North American factories bought less inputs and aggressively increased inventory buffers in April in response to tariff concerns. 

“The first blows of the tariff war have landed on global manufacturers. Stockpiling is accelerating at a concerning rate and the first signs of manufacturers anticipating slower demand and supply shortages have emerged,” said John Piatek, vice president, consulting, GEP.

The North American index score ticked up to -0.33 from -0.63 in March. A value above 0 indicates supply chains are being stressed, while a value below 0 means supply chain capacity is being underutilized.

The global index score increased slightly to -0.39 in April from -0.51 in March.

Meanwhile, Asian manufacturer purchasing activity fell to its lowest level since December 2023. Spare capacity increased in Asia as factories slowed down in China, Taiwan, and South Korea.

The Asian index score fell to -0.32 from -0.12 in March.

Europe was a bright spot, with further signs the continent’s industrial recession is tapering off. Supply chain capacity was underutilized to the smallest degree in ten months, reflecting growth in Germany and France.

Europe’s index score increased to -0.29 from -0.63 in March.