Apr US logistics manager's index 58.8, up 1.6 points from March's 57.1

This reading of 58.8 is similar to the readings observed in the fourth quarter (Q4) last year. However, the factors leading to this score, as well as the dynamics of the overall economy, have shifted notably since then.

The small positive movement in the overall index was the result of counteracting forces among the eight sub-metrics.

Inventory levels continued to rise, but at a slower (plus 4.2) rate of 57.1. This represents a return to normal seasonal inventory build-up, which is a departure from the frantic inventory level increases observed throughout Q1 2025.

Despite this, inventory costs increased (plus 5) to 75.6. Warehousing prices were up to an even greater extent (plus 11.2) to 72.3. The increases in these two suggest that much of the inventory that was rushed in during Q1 is still sitting stagnant in storage facilities and not being sold to consumers, an official release said.

Transportation metrics showed some strength in April, as transportation prices were up (plus 5.8) to 62.3. This expansion was driven by downstream respondents, who reported significantly faster levels of expansion in both transportation utilisation and transportation prices.

It will be interesting to see whether the market continues to show strength if there is a pullback in imports, the release noted.

There are also some early signs suggesting that transportation in 2025 could have similar dynamics to 2019, when the B2B and long-haul sectors struggled, but B2C and short-haul remained resilient. Whether or not these dynamics hold remains to be seen.

Researchers at Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University, and the University of Nevada, Reno, and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued the latest LMI report.

ALCHEMPro News Desk (DS)