US Logistics Services Sector Growth Accelerates in Early 2026 Amid Cost and Capacity Pressures

The US Logistics Managers' Index (LMI) recorded a notable increase in January 2026, reaching 59.6 points - its highest level in seven months, up from 54.2 in December - signaling faster sector expansion.

This improvement was driven by a moderate resumption of restocking activities at the start of the year, following a period of inventory adjustment. Inventory levels rose from contraction to 53.9 points, up from 18.8 the previous month. However, the pace of increase remained below the typical January surge, reflecting cautious inventory management.

Businesses continue to manage inventories carefully, maintaining relatively lower levels in line with earlier forecasts amid ongoing cost pressures. Inventory costs rose to 71.3 points, indicating persistent inflationary pressures in supply chains.

Warehouse capacity dropped to 50 points, signaling tighter supply, while warehouse utilization climbed to 54.4 points, emerging from contraction and reflecting higher storage demand.

In transportation, conditions remained relatively tight, with the index at 47.1 points, leading to transportation prices jumping to 71.4 - the highest since April 2022.

This performance depicts a rapidly growing US logistics sector operating in an environment of elevated costs and capacity constraints, with companies seeking a balance between restocking and operational efficiency.