The overall rate of expansion is largely due to a shift back towards milder restocking to start the year. It is lower than last year because the rate of expansion for inventory levels (53.9) is relatively mild compared to what is often seen in January (58.5 in 2025), when firms are engaged in restocking.
Inventory costs (plus 8.4 points) read in at 71.3, pushing them back above the significant expansion threshold of 70 for the 12th out of 13 times.
The expansion in inventory is reflected in warehousing capacity dropping by 11.2 points to 50. Warehousing utilisation is the mirror image, bouncing back by 11.6 points from contraction to expansion at 54.4, an official release said.
Transportation is still tight, although the rate of transportation capacity has slowed from 36.9 to a milder rate of 47.1. This continued tightening led to another increase (plus 4.8 points) in transportation prices, which at 71.4 is expanding more quickly than any time since April 2022.
Researchers at Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University, and the University of Nevada, Reno, and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued the LMI report.
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