United States LMI Logistics Managers Index

The Logistics Manager’s Index in the US increased to 56.5 in February 2024, the highest reading in four months, from 55.6 in January, amid a broad-based expansion in all metrics and continued progress in transportation and the buildup of inventories upstream at the manufacturing and wholesale levels. There was a continued rise in inventory levels (58.5 vs 52.8) which has led to a tightening in warehousing capacity (52.8 vs 54.1) and growth across all three transportation metrics. Particularly, transportation prices (57.6 vs 55.8) have reached their fastest rate of growth since the start of the freight recession in June 2022. Transportation capacity was also up (60.9 vs 54.5), bumping it higher than transportation prices and suggesting that we have not yet entered a true growth period in the freight market. Transportation utilization also increased (56.5 vs 55) and inventory costs slowed (62.9 vs 66.8).

The Logistics Manager’s Index in the US increased to 55.6 in January 2024, the highest in three months, from 50.6 in December. For the first time since September 2019, every metric is in expansion territory, led by an increase in the restocking of inventories (52.8 vs 44.3), especially for retailers, after a busy holiday season. This in turn led to a considerable expansion of inventory costs (66.8 vs 55.8). Also, transportation prices rose for the first time since June 2022 (55.8 vs 43.1). Meanwhile, warehousing metrics rose at a slightly slower pace, namely warehousing capacity (54.1 vs 55.1), warehousing utilization (58.7 vs 60.2) and warehousing prices (64.2 vs 65.5). "We need to see a longer period of growth to call an official end to the freight recession. However, January’s report does offer evidence that the logistics industry could be moving back into a period of growth". Yet, future predictions for the overall index rose to 62.8 from 59.9.

The Logistics Manager’s Index in the US increased to 50.6 in December 2023 from 49.4 in November, showing the logistics sector returned to growth pushed by holiday shopping. Warehousing metrics led the increase, as Warehousing Capacity is tighter (-5.5 to 55.1) while Utilization (+7.4 to 60.2) and Prices (+1.2 to 65.5) are both expanding at increasing rates. Inventory Levels continued to decline at a steady pace (44.3, the same as in November), although they were breaking even Downstream, which is likely indicative of JIT practices products selling briskly. The JIT practice weighed on Inventory Costs which rose at the slowest pace ever (-6.3 to 55.8). Also, Transportation Utilization moved back into expansion (+4.6 to 54.6) but freight continues to struggle, with Transportation Prices decreasing more (-1.1 to 43.1).