The logistics industry experienced its ninth consecutive month of growth in August, despite a slight slowdown from July, according to the latest Logistics Manager’s Index (LMI) report.
Logistics Industry Maintains Growth Momentum
The LMI report for August recorded a score of 56.4, a slight decrease from July’s 56.6, but in line with the trend observed over the past four months. The LMI, a monthly measure of economic activity across warehousing, transportation, and logistics markets, indicates expansion when above 50 and contraction when below 50. The August reading marks the ninth consecutive month of expansion in the logistics sector.
Inventory Levels Rise in Anticipation of Q4 Demand
A significant change was observed in inventory levels in August, with an increase of over six points compared to July, breaking a three-month contraction streak. This suggests that companies, after depleting their inventories, are now replenishing them in anticipation of demand in the fourth quarter. This shift also indicates a return to more typical growth patterns following the accelerated demand for logistics services during the Covid-19 pandemic and the recent freight recession lows.
The LMI report, based on a monthly survey of logistics managers nationwide, tracks overall industry growth and eight specific areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is a collaborative effort of researchers from several universities in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
