Logistics Managers’ Index September 2022 Report
The Logistics Managers’ Index reads in at 61.4 in September, up (+1.7) from August’s reading of 59.7, and marking a return to the 60’s after a one-month detour into the 50’s. The sustained growth in the logistics industry continues to be fueled by high levels of inventory and the associated levels of cost and utilization associated with holding them. On the other hand, transportation metrics continue their slowed pace, reaching the second highest level of capacity growth, and the third fastest rate of price contraction in the history of the index. Interestingly, Transportation Utilization is the outlier here, as both utilization metrics in the index were up significantly in September. Essentially, it seems that inventory has been moved early and is ready to go for Q4. The question now is whether it will start moving soon, or if systems will remain clogged through the rest of 2022.
Researchers at Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued this report.
The LMI score is a combination of eight unique components that make up the logistics industry, including: inventory levels and costs, warehousing capacity, utilization, and prices, and transportation capacity, utilization, and prices. The LMI is calculated using a diffusion index, in which any reading above 50.0 indicates that logistics is expanding; a reading below 50.0 is indicative of a shrinking logistics industry. The latest results of the LMI summarize the responses of supply chain professionals collected in September 2022. Overall, the LMI is up (+1.7) from August’s reading of 59.7. Every metric other than Transportation Prices and Warehousing Capacity is growing at a faster rate this month, pointing to some potential bounce back potential in the logistics industry.