Inventories

The November LMI reading came in at 55.7 (a reading above 50 indicates growth is occurring), following matching 57.4 readings, for both September and October. This represents the ninth straight month the LMI has been below the all-time overall average of 61.4.

First quarter revenue growth expectations were described as steady in the report, with an average forecast of 2%, while positive revenue sentiment hit 72%, its highest level since the second quarter 2025, following a 69% projection, for the fourth quarter, in the report’s previous edition.

The October LMI reading came in at 57.4 (a reading above 50 indicates growth is occurring) for the second consecutive month, matching the September reading. This represents the eighth straight month the LMI has been below the all-time overall average of 61.4.

The Federal Reserve said yesterday that it lowered the target rate, for the federal funds rate, which comes from its Federal Open Market Committee (FOMC) for the second consecutive month, dropping it by 0.25%, to 3.75%-to-4.0%, its lowest rate level since 2022.

Accenture’s latest holiday survey finds 70% of retail executives are worried they won’t have enough stock to meet demand.

The September reading, at 57.4 (a reading above 50 indicates growth is occurring), trailed August’s 59.3 by 1.9%, coming in at its lowest level since March and its second-lowest this year—and it is the seventh consecutive month the LMI reading has been below the all-time overall average of 61.5.

A session at this week’s Council of Supply Chain Management Professionals (CSCMP) EDGE conference in National Harbor, Maryland addressed various aspects related to the current state of the freight market, including the impact of various freight recessions, above-average inventory levels despite efforts to reduce them, the importance of maintaining shipper-provider relationships, as well the impact of tariffs, and other topics.

In this podcast, Logistics Management Group News Editor Jeff Berman interviews Dr. Zac Rogers, Associate Professor of Operations and Supply Chain Management at Colorado State University.

A common refrain among industry stakeholders has been that they know tariffs are coming, or have already arrived, but they badly want, and need, some clarity and stability on tariff rates in order to effectively take action, as it relates to a whole host of things, including: operations; sourcing and procurement; inventory management; capital expenditures; and hiring and staffing, among many others.

The June LMI reading, at 60.7, increased by 1.3% over May’s 59.4, while representing only the third time going back to July 2022 it has cracked the 60 mark—all of which have occurred in 2025, with 2023 and 2024 not making it to that level.

The report’s benchmark reading, the PMI, came in at 48.5 (a reading of 50 or higher indicates growth), down 0.2% from April’s 48.7 reading. The last three months of declines were preceded by gains, with January and February readings at 50.9 and 50.3, respectively, and were preceded by 26 months of declines.

The April LMI reading, at 58.8, marks a 1.6% increase over March’s 57.1 (the lowest reading since August 2024), with its authors calling it a slight uptick, which was preceded by a 5.6% decrease, from February to March. And it added that the April reading is in line with readings seen over the fourth quarter 2024, with the caveat that factors leading to this score, as well as the dynamics of the overall economy, have shifted noticeably since then.

On the revenue side, the report found that 71% of respondents forecasted positive revenue growth, down 3% from the second quarter, and up 6% compared to the first quarter. And it added that 16% of respondents are neutral, up from 12% in the second quarter, with 14% negative, matching the second quarter.

The report’s benchmark reading, the PMI, came in at 48.7 (a reading of 50 or higher indicates growth), down 0.3% from March’s 49.0 reading. The last two months of declines were preceded by gains, with January and February readings at 50.9 and 50.3, respectively.

In this podcast, Jeff Berman, Group News Editor for Logistics Management and the Peerless Media Supply Chain Group, interviews Rob Handfield, Professor at North Carolina State's Poole College of Management and Bank of America Distinguished Professor of Supply Chain Management.