US Logistics Activity Reaches Strongest Growth Since 2022 as Retail Inventories Climb

Activity across the U.S. logistics sector accelerated in June, reaching its strongest pace in more than four years as retailers expanded inventories, warehouse demand increased and transportation activity strengthened ahead of the second half of the year.

According to the Logistics Managers’ Index (LMI), the headline index rose to 71.1 in June from 69.5 in May, marking the highest reading since March 2022 and signaling continued expansion across the logistics industry.

Retailers Build Inventories Ahead of Peak Season

The increase was driven primarily by a sharp rise in Inventory Levels, which climbed 5.7 points to 60.5.

The report attributes much of the increase to larger companies and downstream retailers, suggesting businesses remain confident in consumer demand despite persistent inflationary pressures.

The inventory buildup may also reflect companies accelerating purchases before potential tariff increases expected later in July, allowing retailers to position merchandise ahead of the year-end shopping season.

The findings indicate that consumer spending has remained resilient during the first half of 2026, encouraging retailers to replenish inventories earlier than usual.

Warehousing and Transportation Demand Accelerate

Higher inventory levels translated into stronger demand throughout the logistics network.

Warehousing Utilization increased 6.5 points to 69.4, while Warehousing Prices rose 3.0 points to 73.8, reflecting tighter storage conditions and stronger demand for warehouse capacity.

Transportation activity also strengthened, with Transportation Utilization climbing 5.2 points to 74.7, indicating increased movement of goods across supply chains.

At the same time, Warehousing Capacity declined 3.0 points to 47.5, moving back into contraction territory as available storage space became more limited amid rising inventory volumes.

Supply Chains Continue to Normalize

The latest LMI data suggest U.S. supply chains remain active despite ongoing uncertainty surrounding inflation, trade policy and global economic conditions.

Growing inventories, rising warehouse utilization and stronger transportation demand point to continued business investment in inventory management, while the decline in available warehouse capacity reflects tighter logistics conditions as companies prepare for seasonal demand.

Market participants will continue monitoring inventory trends and tariff developments in the coming months to assess whether the recent acceleration represents sustained demand or a temporary pull-forward of shipments ahead of potential trade policy changes.

Source: Logistics Managers’ Index (LMI).