United States LMI Logistics Managers Index CurrentDecember 2022 Data

The Logistics Manager’s Index in the US increased to 54.6 in December of 2022 from 53.6 in November which was the second lowest reading on record, with economic activity usually revolving around holiday shopping firms take steps to prepare for it. Inventory Levels (57.3) are increasing at a much slower rate than was observed throughout most of 2022. Inventory Levels were much higher for Downstream than for Upstream firms (62.8 to 53.3 respectively), as Downstream respondents such as retailers held higher levels of inventory and dealt with more limited warehousing as they pushed to get goods to consumers for holiday shopping. Meanwhile, Transportation Utilization was down to 48.1, marking the first time it has dipped into contraction territory since April of 2020. Transportation Prices contracted at a rate of 36.9, which is the sharpest rate of contraction on record.

The Logistics Manager’s Index in the US fell for a second month to 53.6 in November 2022 from 57.5 in October. It is the second lowest reading on record only surpassing 51.3 in April 2020 at the height of COVID-19 lockdowns. The slowdown in logistics growth was largely due to the long-anticipated wind down in Inventory Levels (54.8), prompted by the movement of goods downstream towards retailers and the sale of those goods as holiday spending picks up. Meanwhile, Warehousing Capacity remains tight (46.6), which in turn ensures continued expansion in Warehousing Prices (74.4). Warehousing Utilization continued to grow at a slightly reduced rate (56.8). On the flipside, the transportation market continues to fall from the dizzying heights that had become the norm during 2021. Transportation Capacity is still growing rapidly (71.4) but Transportation Prices (37.4) recorded a record decline and Transportation Utilization stalled (50).

The Logistics Manager’s Index in the US retreated to 57.5 in October of 2022 from 61.4 in September, pointing to the slowest growth in the logistics sector since May of 2020. Transportation metrics continue to be a drag, while inventories remain high, warehouses remain full, and they both remain expensive. While there is some evidence that firms are finally winding down their inventories, the costs associated with holding them remain high, and there's still a lack of available warehousing capacity. Inventories grew the least since December (65.5 vs 71.9) as the result of concentrated efforts by many firms to run down the volume of goods being held within their supply chain. Meanwhile, inventory costs (80.9 vs 77.2) and warehousing prices (75.5 vs 75.4) grew faster while transportation capacity increased at a record pace (73.1 vs 71.8).