DEMAND FOR COMPONENTS AND RAW MATERIALS IMPROVES IN ASIA, PUSHING UP SUPPLY AND INFLATIONARY PRESSURES

GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX - Seite 2

REGIONAL SUPPLY CHAIN VOLATILITY: Europe continues to be the greatest bottleneck for suppliers, although pressures are easing. Notably, suppliers to U.K. and North American companies saw spare capacity rise for the first time since summer 2020.

For more information, visit www.gep.com/volatility

Note: Full historic data dating back to January 2005 is available. Please contact [e-mail].

ABOUT THE GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX

The GEP Global Supply Chain Volatility Index is produced by S&P Global and GEP. The GEP Global Supply Chain Volatility Index is derived from S&P Global's PMI surveys, sent to companies in over 40 countries, totaling around 27,000 companies. These countries account for 89% of global gross domestic product (GDP) (source: World Bank World Development Indicators).

The headline figure is the GEP Global Supply Chain Volatility Index. This is a weighted sum of six sub-indices derived from PMI data, PMI Comments Trackers and PMI Commodity Price & Supply Indicators compiled by S&P Global.

The GEP Global Supply Chain Volatility Index is calculated using a weighted sum of the z-scores of the six indices. Weights are determined by analyzing the impact each component has on suppliers' delivery times through regression analysis.

The six variables used are 1) JP Morgan Global Quantity of Purchases Index, 2) All Items Supply Shortages Indicator, 3) Transport Price Pressure Indicator, and Manufacturing PMI Comments Tracker data for 4) stockpiling due to supply or price concerns, and backlogs rising due to 5) staff shortages and 6) item shortages.

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. The regional indices measure the performance of supply chains connected to those parts of the world.

For more information on PMI surveys, PMI Comments Trackers and PMI Commodity Price & Supply Indicators, or the GEP Supply Chain Volatility Index methodologies, please contact [e-mail].