Logistics Managers Index continues to show growth in August

Summary

The logistics sector remained in expansion in August, with the Logistics Managers Index (LMI) edging up to 59.3 from July’s 59.2. The monthly index — produced by researchers from several US universities with support from CSCMP — aggregates eight components including inventory, warehousing and transportation measures.

The slight rise was driven by inventory and warehousing metrics (Inventory Levels 58.2, Inventory Costs 79.2, Warehousing Prices 72.2), while Warehouse Capacity was barely above flat at 50.5. Transportation showed mixed signals: Prices fell to 56.1, Utilisation dropped to 54.7, and Capacity rose to 57.3, producing a mild negative freight inversion that warrants monitoring.

Key Points

Overall LMI: 59.3 in August, a 0.1 point increase from July’s 59.2.
Inventory Levels rose to 58.2; Inventory Costs jumped to 79.2, signalling higher holding costs for some firms.
Warehousing Prices increased to 72.2 while Warehouse Capacity sat at 50.5 — just above break-even for growth.
Transportation: Prices down to 56.1, Utilisation down to 54.7, Capacity up to 57.3 — creating a mild negative freight inversion.
Negative freight inversion usually precedes slowdowns if sustained for at least three months; authors advise continued monitoring.
Smaller upstream firms are reporting higher inventories, while larger downstream retailers maintain JIT strategies amid tariff uncertainty.

Context and relevance

The LMI is a composite, timely gauge of logistics activity — useful for operators, shippers and carriers. The current mix of rising inventory costs and higher warehousing prices alongside increasing transport capacity suggests shifting cost and capacity balances across the supply chain. Transportation metrics can be leading indicators for broader economic movements, so the mild negative inversion is notable even if it doesn’t yet indicate a freight recession.

Author style

Punchy: This is a concise snapshot that matters — transport trends often lead the wider economy. The report flags a real shift (negative freight inversion and upstream inventory accumulation) that logistics managers, carriers and procurement leads should track closely.

Why should I read this?

Short version: if you move goods, this affects costs and capacity — so read the figures. The update tells you where pressure points are (warehouse costs up, transport utilisation easing), who’s feeling the pinch (smaller upstream firms) and what to watch next (whether the inversion holds). We’ve done the reading for you — the numbers are the headline.