Logistics Manager’s Index posts a strong June reading

The logistics sector saw growth in June for the second consecutive month, according to the recently-released Logistics Manager’s Index (LMI).

The monthly LMI is a joint project among researchers from Arizona State University, Colorado State University, University of Nevada, Reno, Florida Atlantic University, and Rutgers University, and also receives support by Council of Supply Management Professionals (CSCMP). CSCMP. The LMI is written by Zac Rogers Ph.D., Steven Carnovale Ph.D., Shen Yeniyurt Ph.D., Ron Lembke Ph.D., and Dale Rogers Ph.D.

The report’s authors explained that the LMI score, or reading, is based on eight “unique components” within the logistics sector, including: inventory levels and costs, warehousing capacity, utilization and prices and transportation capacity, utilization, and prices.

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 authors explained that the rate of expansion rate for Inventory Levels served as a major driver for June’s LMI reading, with an 8.3% increase to 59.8. Not surprisingly, it explained that this was tariff-driven, with the first half of June coming in at 67.4, a period which saw importers taking advantage of the pause the LMI described as punitive, followed by a decline to 52.2 over the back half of the month. June Inventory Costs rose 2.5% to 80.9, topping 80 for the first time since October 2022, during the post-pandemic inventory bullwhip. This also showed up in June’s Warehousing Capacity reading, which fell 2.2% to 47.8, falling into contraction territory for the first time going back to January 2023.

On the transportation side, the LMI stated that Transportation Capacity decreased 2.3% to 52.4, its lowest reading since October and within contraction range, with Transportation Prices, down 1.1%, to 62.0, which LMI called robust. Transportation Utilization was up 0.3%, at 52.9, with the metric not contracting since July 2023. And Warehousing Capacity was down 2.2%, at 47.8, its first month of contraction since January 2023, and Warehousing Utilization was off 0.3%, to 62.2.

Addressing the LMI reading coming in above the 60-mark for the third time in 2025, and also over the past two-and-a-half years, the report said that is indicative of the heightened and also somewhat unseasonal level of supply chain activity over the first half of 2025.

“While this has been positive in the short-run, it does raise questions on whether the same level of demand will be present in the second half of the year when we would normally see it pick up,” it said. “The uncertainty exists due to both the high levels of inventory already in the U.S., as well as the continued ambiguity regarding future U.S. trade policy. This was highlighted by the announcement…that talks between the U.S. and Canada were being suspended due to a Canadian tax on U.S. digital service firms. This marks a shift from statements earlier in June that the two neighbors would settle on a trade deal by July 20^th. Many of the temporary suspensions on tariffs are due to end in the next month. Whether or not deals can be reached will dictate the direction of financial markets, the overall economy, and the logistics industry.”

As for the amount of ongoing uncertainty, especially, as it relates to logistics, the LMI made it clear that there is clearly a feeling among global supply chain managers that they will be able to figure things out and that tariffs will not be catastrophic, mainly because it is likely the White House will not put the economy into too deep of a ditch.