November 2023 marked the eighth straight month of spare capacity across global supply chains, according to a recent survey conducted by GEP, a supply chain and procurement software provider. GEP’s vice president of consulting, Todd Bremer, said that current spare capacity levels indicate the end of a global manufacturing slump “is still some way off.”

The GEP Global Supply Chain Volatility Index — an industry indicator tracking demand conditions, backlogs, shortages, inventories and transportation costs — was once again in the red after registering a score of -0.34 in November, a slight improvement from -0.41 in October.

The survey, published December 14, showed that weakened demand for raw materials, components and commodities continued into November while global purchasing activity improved.

The index rose to its highest level since April in the U.S., suggesting a manufacturing downturn in the country has passed its peak.

The index took a big jump in the U.K. from -0.93 to -0.58, indicating the nation’s economy may perform better than other European countries.

Even though Asia’s index score rose, the region is still grappling with one of the greatest degrees of spare vendor capacity seen in the post-COVID-19 pandemic era.

The survey also found that transportation costs have begun to stabilize and return to levels that are close to long-term averages. Meanwhile, reports of material shortages fell again in November, remaining at their lowest levels since January 2020.

The GEP Global Supply Chain Volatility Index is produced by GEP and the financial information company S&P Global. The index is derived from surveys of 27,000 businesses in 40 countries around the globe. A value above zero indicates supply chain volatility is growing while a value below zero indicates reduced supply chain volatility.