The logistics economy experienced a slowdown in July
📉 The logistics economy experienced a slowdown in July.
The Logistics Managers' Index (LMI) report for July indicates a slowdown in economic conditions within the logistics industry, continuing a trend that started earlier this year. The LMI reached an all-time low reading of 45.4, down slightly from June, marking the third consecutive month of contraction in the index. The slowdown is attributed to low demand for logistics services, with warehousing metrics showing signs of softening and transportation conditions remaining sluggish. Warehousing capacity expanded for the fourth straight month, which is unusual for the summer season, as companies might be adopting more flexible inventory management strategies and being cautious due to higher storage costs. However, there are signs of improvement in the transportation sector, suggesting that it may be nearing the bottom of its downturn. Researchers anticipate that the freight market could turn around in the coming months, but overall, the logistics industry is still facing challenges amid broader economic conditions.
On Friday, trucks carrying humanitarian aid began delivering much-needed supplies to Gaza using a temporary pier built by the U.S.