The Logistics Managers’ Index rose from 69.5 in May as resilient consumer spending, inventory buildup and tighter warehousing and transportation conditions lifted supply chain activity.
U.S. supply chains expanded further in June, with the Logistics Managers’ Index rising to 71.1 from 69.5 in May, the fastest pace of growth and the first reading above 70 since March 2022. The report said activity was driven by resilient consumer spending despite high inflation and slower job growth, prompting retailers and other large firms to rebuild inventories ahead of the back-to-school and holiday seasons. Higher inventory levels, tighter warehousing capacity, and rising transportation and warehousing utilization and prices all contributed to the gain. Steven Carnovale, Ph.D., associate professor of supply chain management in FAU’s College of Business, said companies may also be bringing in goods early to mitigate future tariff increases and lock in pricing before any hikes take effect. The LMI is a diffusion index (survey-based measure of expansion) based on director-level and above supply chain executives and tracks eight components including inventories, warehousing and transportation. Respondents expect U.S. supply chains to keep expanding over the next 12 months, although limited capacity and trade policy uncertainty could affect that outlook.