The Logistics Manager’s Index in the US fell for a second consecutive month to 54.2 in December 2025 from 55.7 in each of the previous two months. The reading pointed to the slowest expansion in the logistics sector since April 2024, with the majority of the downward pressure coming from inventory and warehousing markets. There was an extreme contraction in inventory levels (-17.4 to 35.1) likely due to a rapid holiday rundown of extreme levels of inventory, which led to a slowdown in inventory cost (-8.1 to 62.9). At the same time, warehousing capacity increased (+6.4 to 61.2) and warehousing utilization hit a second-consecutive all-time low (-4.7 to 42.9). All of these downward movements are due to firms continuing to move inventories downstream towards consumers. This downstream push catalyzed transportation metrics, with transportation capacity moving back to contraction (-13.1 to 36.9) while transportation prices went up (+1.8 to 66.7).

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