Logistics Index Slows Down Amid Cost Pressures and Inflation Concerns

The Logistics Manager's Index (LMI) for August showed growth at a slower rate than previous months, according to a report published by researchers from various universities and supported by the Council of Supply Management Professionals. The LMI score for August was 66.6, down 2.2% from July's reading of 68.9 and 4.4% below June's four-year peak of 71.1.

The report highlighted mixed results across key metrics, including inventory levels, costs, warehousing capacity, utilization, and prices, as well as transportation capacity, utilization, and prices. Inventory levels decreased by 2.2%, expanding at a slower rate, while inventory costs increased by 1.6%, also expanding at a slower rate.

Dr. Zac Rogers noted that aggregate logistics costs have been increasing, averaging 241.9 from March to August in 2026, which he called another statistically significant step up. Rogers warned that aggregate costs exceeding 240.0 have led to increased levels of supply-driven inflation and that the Federal Reserve may not be able to do much about it.