The U.S. Logistics Managers’ Index (LMI) rose slightly to 59.3 in August from 59.2 in July, as gains in inventory and warehousing metrics offset weakness in transportation, according to a report released this week.
Inventory levels climbed 2.7 points to 58.2, pushing inventory costs 7.3 points higher to 79.2 and lifting warehousing prices by 3.9 points to 72.2. Warehousing capacity growth slowed to 50.5, just above the break-even level that indicates expansion.
In contrast, transportation metrics dragged on the index. Transportation prices dropped 6.9 points to 56.1, while utilisation fell 4.8 points to 54.7. Transportation capacity increased 4.7 points to 57.3, creating what researchers described as a “mild negative freight inversion.”
Negative freight inversions — when capacity grows faster than prices — can signal looming downturns in the transportation sector if sustained for several months. Analysts noted that while the August reading was not yet a sign of a freight recession, it continued a trend that began in January, when prices were running far ahead of capacity.
The LMI is jointly compiled by researchers from Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University, and the University of Nevada, Reno, in partnership with the Council of Supply Chain Management Professionals (CSCMP).
