Logistics growth in the USA slowed slightly in August
The Logistics Manager Index for the USA decreased from 56.5 in July to 56.4 in August 2024, but it continues to show gradual expansion in the logistics sector.
The main movement was in inventory levels (+6.1 to 55.7), breaking the shrinking trend of the past 3 months.
This indicates that after companies reduced inventory, they are now increasing it again in anticipation of the fourth quarter, showing signs of a return to traditional seasonal patterns not seen since COVID.
This increase in inventory has been somewhat eased by increases in warehouse capacity (+5 to 59.5) and transport capacity (+5.8 to 56.7).
This aligns with the idea that a significant amount of inventory is still near the receiving point, waiting to be moved to retail shelves.
Transportation costs decreased (-2.2 to 61.6), but warehouse costs are still rising (+2.8 to 63.8).
Source: Logistics Managers Index
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