We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2023
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2023
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Industry growth slows in December
Forward Thinking

Industry growth slows in December

January 7, 2020
Victoria Kickham
No Comments

Economic activity in the logistics sector increased in December, but at its slowest rate in three years, according to the latest Logistics Manager's Index (LMI) report, released today.

The LMI, a monthly survey of logistics industry professionals, registered 54 in December, down slightly from its reading of 54.5 in November, but down considerably from its year-ago reading of 67. An LMI above 50 indicates expansion in the sector; a reading below 50 indicates contraction.

Declining inventory levels helped drive the lower December results.

LMI: Inventory Levels and Costs, Sept. 2017-Dec. 2019
Enlarge

"The drop is really driven by a big decrease in inventory levels ... [which] dropped down to 42.3, [marking] the first time we've seen active contraction in inventory," said LMI researcher Zac Rogers, assistant professor of supply chain management at Colorado State University. Slowing growth in inventory levels is expected after the holiday shipping rush, but contraction is uncharacteristic, Rogers explained. He said the results point to an overall uncertainty in the marketplace and an expectation of slower economic growth as 2020 gets underway.

The LMI dropped below 60 for the first time last April and has remained there, slowing each month with the exception of last July, but remaining above the 50-point mark indicating growth in the sector.

"... the growth has just been very slow (and has been trending slower)," the researchers wrote in their December report. "It seems to indicate that the U.S. is currently in an uncertain economic time. While it is possible that we are through the 'soft patch' we hit last year, many CFOs are still concerned about a recession due to the ongoing trade wars and weakness in other parts of the world."

The LMI tracks logistics industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP). 

Check the LMI website for past reports and to participate in the monthly survey.

Logistics Strategy
    • Related Articles

      Logistics industry growth slows in April

      Logistics industry growth slows in February

      Logistics industry growth slows in February

    Victoria Kickham, an editor at large for Supply Chain Quarterly, started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for Supply Chain Quarterly's sister publication, DC Velocity.

    Recent Articles by Victoria Kickham

    Logistics economy expanded in September

    Survey: Freight brokers unfazed by industry challenges

    Logistics economy slowed in July

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Walmart to open fifth “next-gen” fulfillment center in 2026

    • 53% of procurement leaders expect to increase their spending in 2024

    • U.S. faces permanent labor shortage, says University of Tennessee economist

    • Pepsi exec highlights four key structural changes in the supply chain

    • What skills will you need in the Age of AI?

    Featured Video

    Edge2023 innovationtheater here technologies

    CSCMP EDGE 2023 Innovation Theater: Enabling Peak Performance in Last-Mile Delivery Through Private Mapping and Custom Routing - HERE Technologies

    CSCMP EDGE 2023
    At HERE Technologies, we understand the hypercompetitive world of e-commerce, retail, and parcel delivery is increasing in complexity every day. End customers demand ever-increasing delivery performance levels regarding on-time arrivals, flexibility in delivery schedules, pricing and payment options, and more....

    FEATURED WHITE PAPERS

    • Balancing Act: How Freight Brokers Help Shippers Navigate Uncertainty

    • Quarterly Freight Data Report: Q3 2023

    • A Brighter Future: How COVID-19 Continues to Change Freight Procurement Strategies for the Better

    • Five questions to ask before electrifying your indoor forklift fleet

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing