Economic activity in the logistics industry expanded in August—but only marginally and marked by conflicting activity in warehousing and transportation metrics.
That’s according to the latest Logistics Managers’ Index (LMI) report, released this week. The August LMI measured 59.3, up slightly from July’s reading of 59.2 and just below the all-time index average of 61.5. The results represent a moderate rate of expansion across the industry, according to LMI researchers.
The LMI report is based on a monthly survey of logistics managers nationwide that measures business activity in warehousing and transportation markets. An LMI reading above 50 indicates expansion, and a reading below 50 indicates contraction.
Researchers said the minimal overall LMI movement in August was the result of increasing inventory costs tempered by a softening freight market. Inventory levels expanded nearly three points, pushing up both inventory costs and warehousing prices, which rose seven points and four points respectively. At the same time, warehousing capacity expanded only marginally.
Downward pressure came from notable drops in both transportation prices and transportation utilization, which fell seven points and five points, respectively. At the same time, transportation capacity rose nearly 5 points.
The report’s 12-month outlook calls for continued expansion across the industry, with respondents predicting that activity will be “fairly even” across the supply chain, according to the report.
The LMI is 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).
