June LMI Shows Scattered Results
The Logistics Managers’ Index (LMI) logged a 55.3 reading for June, indicating slight sequential decline but remaining in expansion territory for the seventh consecutive month and for 10 of the past 11 months.
A monthly supply chain survey registered a neutral reading for transportation capacity in June, marking the first time in over two years the index didn’t expand. Sentiment around transportation pricing indicated growth for the second consecutive month.
Image: Logistics Managers' Index June 2024 Transportation Capacity.
The LMI showed a reading of 50 for capacity in June, the first non-growth reading since March 2022, just before the onset of the freight recession.
The capacity subindex was 7.3 percentage points lower in June compared to May. The LMI, which compiles eight key components of the supply chain, is a diffusion index where a reading above 50 indicates expansion, while a reading below 50 signals contraction.
Transportation pricing increased to 61, up 3.2 points sequentially, reaching its highest level since June 2022. This dataset has been in expansion territory for five of the past six months, ending June 14.5 points higher than at the beginning of the month.
The pricing subindex was higher than the capacity subindex for the second straight month, typically signaling freight market growth.