For the second straight month, inventory metrics are a drag on the Logistics Managers' Index (LMI). The August reading comes in at 66.6, down 2.2 from July (following that month's 2.2 point drop from June). The reading is still comfortably above its long-term average of 61.7, but two straight months of dips suggests some market vulnerability.
Inventory Levels in August are down to 52.8 (-2.2), close to the no-movement threshold of 50. Because of the stock-up slowdown, Warehousing Capacity grew back into expansion, with a move of +7.2 to 53.5 as Warehousing Utilization correspondingly dipped 6.5 points to 59.6. Authors note consumer spending was down 0.6% in July, and what people are spending on appears to be shifting to lower-cost goods as they deal with inflation concerns. Tariffs will also play a part in how the final stretch of 2026 goes in terms of imports - which are still looking strong for now.
Adding to inflation worries are the elevated costs through just about every step of the supply chain. Warehousing Prices are holding at 75 (-0.5), Inventory Costs are higher than that - up 1.6 to 78.6, and Transportation Prices dwarf both those metrics, gaining 3.1 points monthly to settle at 90. Those are on top of the continued price at the pump, as diesel remains significantly elevated thanks to the Iran conflict. With the amount it takes to move and stage products, consumers may see those higher costs reflected in their shopping trips over the next few months.
While prices have stayed high, Transportation Capacity jumped 11.6 in August, to a still contracting 40. That marks a significant bounce-back for the metric, with authors noting 9,700 warehousing and transportation jobs were added in July after 11,400 were lost the month prior. It also dovetails with suggestions on recent Intermodal Logistics Podcast episodes with Jason Hilsenbeck on drayage and Jason Miller on trucking that drivers would return to the market after a significant dip earlier in the year.
Rounding out the metrics, Transportation Utilization saw a 5.6 point August increase after a nearly 10 point dip the prior month, coming in at 70.6.
Future predictions ticked down 0.9 from July, with respondents projecting an LMI of 69.6 a year from now. Still, authors note logistics pros are holding generally steady in what they expect the index to show next summer, with three straight months hovering around 70. Diving deeper into the predictions, all three cost metrics remain elevated, with only Transportation Prices dipping slightly, while there is more optimism regarding Warehousing and Transportation Capacity than last month's survey showed.
And congratulations are in order for the creators of the LMI as it turns 10 years old this month. Learn more about the index on our podcast with its primary author Zac Rogers, Ph.D., associate professor of Supply Chain Management at Colorado State University.
See the summary of the August 2026 Logistics Managers' Index, by the numbers:
Researchers at 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) - issue the report. The LMI score is a combination of eight unique components that make up the logistics industry, including: inventory levels and costs, warehousing capacity, utilization, and prices, and transportation capacity, utilization, and prices.
The LMI is calculated using a diffusion index, in which any reading above 50.0 indicates that logistics is expanding; a reading below 50.0 is indicative of a shrinking logistics industry. The latest results of the LMI summarize the responses of supply chain professionals collected in August 2026.
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