The Logistics Manager’s Index (LMI) dropped 1.7 points in November to sit at 55.7, the lowest it has been since June 2024, and is the ninth consecutive month to come in below the all-time overall average of 61.4.

The index authors say the slowdown, after September and October LMIs of 57.4, is being driven by a continued softening of inventory and warehousing metrics.

Warehouse Utilization was down 9 points to 47.5, the first time in the nine-year history of the index that this metric has contracted. 

“Never before have LMI respondents reported that they were using less available warehousing space month-over-month,” the LMI report states. “This shift is a product of the continued rundown of the large stocks on inventories that were built up through the first nine months of 2025 which has led to a softening in the warehouse market.”

The LMI says this softening resulted in an increase (2.8 points) in available Warehousing Capacity to 54.8, which is the highest since April, as well as a slowdown (-4.8) in Warehousing Price expansion to 62.9, the lowest since March. 

“To give some perspective on how swiftly the costs of inventories have risen in 2025: Any reading over 70.0 is considered as significantly expansionary,” the November LMI states. 

“Despite this, [November’s] reading of 70.8 is the second lowest of the year, only outpacing January’s reading of 70.2. That means that we have measured significant expansion in Inventory Costs in every month of 2025.”

The report authors state that tariffs, persistent inflation and a slow job market has many Americans “nervous about the economy”. US consumer sentiment was 51 in November, down 2.6% month-on-month and a huge 29% dip year-on-year.

“Taken altogether, November’s report paints the picture of a warehousing sector in flux,” report authors state. “Utilization is at its lowest level ever as capacity loosens up. 

“However, this is all relative to what have been several years of significant expansion in prices and may represent more of a correction than any type of serious decline in the warehousing industry.”

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.