Breaking down the Logistics Managers Index

As of July, the Logistics Managers Index (LMI) is in its 8th month of expansion. While this seems like a good sign, events like the market decrease are concerning as we near the 2024 U.S. election.

The LMI score is a combination of eight unique components that make up the logistics industry, including inventory levels and costs, warehousing capacity, utilization and prices and transportation capacity. The LMI is calculated using a diffusion index. Any reading above 50.0 indicates that logistics is expanding; a reading below 50.0 is indicative of a shrinking logistics industry.

Dr. Dale Rogers, Professor and ON Seminconductor Professor of Business in the Department of Supply Chain Management at ASU’s W. P. Carey School of Business, joined “Arizona Horizon” to discuss the LMI.