Economic activity in logistics expanded in June, driven by rapidly expanding inventory levels across the industry, according to the latest Logistics Managers Index (LMI) report, a monthly survey of logistics industry professionals, released this week.
The LMI reached 71.1 in June, its second highest reading since March 2022, when the index registered 76.2. An LMI reading above 50 signals expansion across the industry, with a reading above 70 indicating a “significant rate of expansion,” according to the LMI researchers. Expansion indicates strong demand for logistics services.
The LMI has remained above 60 since February and has hovered just below 70 since April.
Inventory levels grew nearly six points in June, fueled by consumer spending, which has held through the first half of the year, as well as the threat of rising tariffs. Retailers’ confidence in spending pushed them to build stock for the second half of the year, while also pulling forward ahead of peak season to avoid higher tariffs, which may increase later in July, the researchers said.
Looking ahead, LMI respondents said they expect June’s momentum to continue, driven by a continued upward shift in expected inventory strategies.
The LMI is based on a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
