Logistics Manager Index (LMI)
What is the Logistics Managers Index?
The Logistics Managers Index is a survey given to North American logistic managers that measures eight different components related to the freight industry. These components include inventory levels and costs; warehousing capacity, utilization and prices; and transportation capacity, utilization and prices. A LMI reading above 50 shows expansion, while a reading below 50 shows contraction in the freight industry.
Why is the Logistics Managers Index valuable?
The logistic components tracked by the Logistics Managers Index are all leading economic indicators that point towards potential movements in the overall economy. Additionally, each component can be isolated and analyzed individually. For example, the LMI can highlight drops or increases in inventory levels, availability in the trucking industry, accepted or rejected truckloads, and more; which can provide more clarity in overall manufacturing.
What should you do?
Watching the Logistics Managers Index can be a useful tool for understanding the overall health of the economy. For those in the manufacturing industry it can also provide critical and detailed insights into the logistics that can impact overall manufacturing. Majestic’s CORE Report follows the Logistics Managers Index; along with other indicators every week to see where the market stands.
Sources:
