The US Logistics Managers' Index eased to 68.9 in July 2026, down from 71.1 in June, when it had recorded its fastest pace of expansion since March 2022. While growth moderated, July’s reading still exceeded every monthly figure posted between 2023 and 2025, signaling continued strength in the logistics sector.
The slowdown was driven primarily by Inventory Levels, which fell 5.5 points to 55.0 after firms pulled inventory forward ahead of July’s tariff increases. The decline was especially sharp among Downstream retailers, where Inventory Levels dropped from 66.0 to 46.3, indicating that inventories accumulated in advance of the holiday season are now concentrated Upstream at the wholesale level.
In contrast, Inventory Costs continued to climb, rising 1.1 points to 77.0. The 22-point gap between Inventory Costs and Inventory Levels highlights persistent cost pressures stemming from tariffs and ongoing geopolitical tensions.
