It has since petered out and suppliers have caught up with their backlogs. GEP's Supply Chain Volatility Index for Asia had avoided falling below zero up until May because of the bump in economic activity following China's reopening.

Most telling, for the first time since August 2020, suppliers in Asia saw spare capacity rise. Falling demand for raw materials and improved supply has drastically reduced the need for businesses to stockpile items, with companies continuing to de-stock after building up huge excesses of inventory between 20.

Global demand for raw materials and components worsened during May, especially across Europe, showing fresh signs of economic weakness. The difference compared to a year ago, when the index recorded 4.72 - one of the highest levels of stress on global supply chains in two decades of data - is striking. The GEP Global Supply Chain Volatility Index, based on data derived from a monthly survey of 27,000 businesses, fell further below zero in May to -0.28, down from -0.04 in April, its lowest level since May 2020.

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