The January Logistics Managers' Index (LMI) has recorded its fastest rate of growth since May 2025 to sit at 59.6, a jump of 5.4 points from December.

Producers of the LMI say the overall rate of expansion in January is “largely due to a shift back towards milder restocking to start the year” and which “comes on the heels of what had been an 18-month low last month”.

“This is the eleventh consecutive reading to come in below the all-time overall average of 61.3,” LMI producers state. “This slightly below average yet steady rate of growth is consistent across supply chains.”

The LMI is produced by researchers at Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University, and the University of Nevada, Reno in conjunction with the Council of Supply Chain Management Professionals (CSCMP), using responses from supply chain professionals.

It is calculated on a combination of eight unique components that make up the logistics industry, including: Inventory Levels and Costs, Warehousing Capacity, Utilisation, and Prices, and Transportation Capacity, Utilisation, and Prices.

Any reading above 50.0 indicates that logistics is expanding in the US; a reading below 50.0 is indicative of a shrinking logistics industry.

January’s LMI shows inventory levels jumped from December’s 35.1 - the lowest ever for this metric - to January’s 53.9, which while a solid improvement, is still down for what is usually expected in January. Inventory levels for January 2025 were a healthy 58.5.

Overall January’s LMI reveal growth is increasing at an increasing rate for inventory levels, inventory costs (71.3, up from December’s 62.9), warehousing capacity (50, down 11.2 month-on-month), warehousing utilisation (54.4, up 11.6 points m-o-m) and transportation prices (71.4, up 4.8).

It is shows growth is increasing, but at a decreasing rate, for warehouse prices (64.8, down 1.5) and transport utilisation (58.1, down 0.1).

“The overall economy continues to be an interesting, if not somewhat uncertain place,” LMI producers state, citing the US Federal Reserve’s decision to keep interest rates steady between 3.5-3.75%. 

“Comments from the board suggest they are comfortable staying put until a big move happens in the interest or unemployment numbers. 

“The nomination of Kevin Warsh for incoming Fed Chair may have some expecting softer interest rates later this year, it is worth pointing out that he was actually fairly hawkish on rates as a governor from 2006-20112.”