The August Logistics Managers’ Index revealed a divergence between transportation capacity and pricing dynamics in the freight market. The overall LMI registered 66.6 for August, declining 2.2 points from the previous month, primarily due to slower inventory growth. Transportation capacity measured 40, remaining significantly below the 50-point expansion threshold but showing improvement of 11 points from July, marking the slowest contraction rate in six months. Transportation utilization jumped 5.6 points to 70.6, representing only the second time in five years the index reached what analysts categorize as robust growth above the 70 level.
Transportation prices climbed another 3.1 points to reach 90, demonstrating substantial year-over-year increases compared to prior August readings of 55 in 2025, 61 in 2024, and 42 in 2023. Industry analysts attributed the pricing pressure to carriers’ need to restore profitability following a prolonged period of depressed rates that made sustained operations challenging. The capacity readings reflected this trend, with August’s reading of 40 contrasting sharply with prior-year levels of 57 in August 2025, approximately 55 in 2024, and 60 in 2023.
On the manufacturing front, the ISM Manufacturing PMI came in at 54.6 for August, declining one point from July but exceeding the economist consensus forecast of 55.2. The New Orders Index remained in expansion territory for the eighth consecutive month at 53.7, while manufacturing employment registered positive growth for the second consecutive month. Respondent sentiment showed 42% positive and 58% negative responses, with pricing volatility identified as the primary concern among those with negative outlooks.
Analysts indicated that pricing pressures were anticipated to persist over the following 12 months, with survey respondents expecting the transportation market to remain tight. While data from July and August suggested some moderation compared to earlier peaks in 2025, capacity remained solidly within contraction territory. Observers recommended monitoring several metrics heading into peak season, including the Tender Rejection Index for capacity signals, the Truckload Volume Index for regional shifts, and the National Truckload Index for spot rate movement.
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