The US Logistics Manager’s Index eased to 69.5 in May 2026 from 69.9 in April, indicating a moderation in logistics sector growth, though it still marks the second-fastest pace of expansion since March 2022. Inventory growth slowed (down 1.5 points to 54.8), and warehousing capacity shifted from contraction to slight expansion (up 5 points to 50.5).
Despite slower inventory accumulation and an increase in available storage space, costs remain high. Inventory costs climbed sharply (up 9.4 points to 84.1), the highest reading since May 2022. Warehousing prices also stayed elevated (70.7 vs. 72.7).
The transportation market remains particularly tight, with prices rising at an unprecedented pace following the closure of the Strait of Hormuz. Transportation prices reached a record high (up 1 point to 96). Transportation capacity continues to contract rapidly (31.7 vs. 28.4), while transportation utilization remains strongly expansionary (69.5 vs. 69.6).
