US Logistics Growth Slows

The Logistics Manager’s Index in the US declined to 59.2 in July 2025 from 60.7 in June, indicating a broader slowdown in the logistics sector.

This was largely driven by a sharp deceleration in the rate of growth for Inventory Costs (-9.9 to 71.9), amid a dip in the expansion of Inventory Levels (-4.2 to 55.2) which led directly to Warehousing Capacity moving back into expansion territory (+3.3 to 51.1).

All of these shifts are primarily driven by either our Upstream or smaller (<999 employees) respondents.

Larger firms and Downstream retailers are actually reporting contracting inventories, more capacity, and lower price expansion as they attempt to maintain JIT inventory management strategies to avoid higher costs.

Transportation Utilization was up (+6.6 to 59.5), but Transportation Capacity (+0.2 to 52.6) and Transportation Prices (+1.0 to 63.0) remained fairly consistent to a slow freight recovery observed through much of 2025.