The Logistics Managers' Index (LMI) rose to 59.4 in May, up 0.6 pts from April, signaling continued expansion driven by rising inventory and transportation costs despite slower inventory accumulation and tighter capacity.

• Inventory Levels dropped -5.5 pts to 51.5, reflecting near-stagnation, while Inventory Costs surged +2.8 pts to 78.4, the highest since Oct 2022, creating a 26.8 pt spread, the third largest in index history.

• Warehousing Capacity fell -5.4 pts to 50.0, indicating no net change, while Warehousing Utilization increased +2.4 pts to 62.5 and Warehousing Prices held steady (-0.2 pts to 72.1).

• Transportation metrics were stable: Capacity dipped -0.5 pts to 54.7, Utilization declined -0.7 pts to 52.6, and Prices rose +0.8 pts to 63.1.
• Small firms reported more logistics activity than large ones, with a higher overall LMI (63.1 vs 56.2), higher Inventory Levels (57.4 vs 46.1), and higher Inventory Costs (85.9 vs 71.6).
• Future expectations point to continued cost pressure: Inventory Costs (78.9), Warehousing Prices (79.4), and Transportation Prices (75.0) are all forecasted to expand, while capacity is expected to remain tight (Transportation Capacity: 50.0, Warehousing Capacity: 53.9).