US Wholesale Sector NAICS 42

Aug 26, 2025 - Logistics Manager’s Index Signals Moderate Growth

• The Logistics Manager’s Index (LMI) posted growth in July 2025, representing a moderate rate of expansion. The July LMI score was 59.2, compared to 60.7 in June and 59.4 in May. Any reading above 50 indicates that logistics is expanding. The fluid state of tariffs continues to impact wholesalers and distributors. The report noted, “Continuing the trend we have observed over the last three months, logistics expansion is being disproportionately driven by smaller firms, who reported an overall index of 62.1, which is statistically significantly higher than the 56.2 that was reported by our larger respondents. This continued disparity is largely driven by higher inventories and tighter capacity for smaller firms.” Compiled by researchers at five universities, the report receives support from the Council of Supply Management Professionals. It measures eight components within the logistics sector, including inventory levels and costs, warehousing capacity, utilization and prices, and transportation capacity.
• Indicators measuring the collective mood of US consumers show mixed signals, with consumer confidence levels slightly up and consumer sentiment falling. Consumer confidence levels, an indicator of discretionary expenditures, improved in July 2025, month over month, rising by 2 points, according to the Consumer Confidence Index. Consumer confidence levels have stabilized since May but remain lower than last year’s, according to The Conference Board, which publishes the monthly index. July’s gain can be attributed to consumers over 35 years old and shared across all income groups, except the lowest income group earning below $15K. In addition, the consumer sentiment index from the University of Michigan dropped in August 2025 for the first time in four months. The index fell to 58.6 in preliminary August data from 61.7 in July. Year-ahead inflation expectation results were higher monthly, as consumers convey lingering anxiety about prices amid tariff impacts. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• According to the Global Port Tracker report from the National Retail Federation (NRF) and Hackett Associates, import cargo at major US container ports is expected to fall 5.6% in 2025 from 2024’s volume amid tariff pressure. Ben Hackett, founder of Hackett Associates, said importers are trying to second-guess tariff levels by pulling forward imports before tariffs take effect. He noted, “The hither-and-thither approach of on-again, off-again tariffs that have little to do with trade policy is causing confusion and uncertainty for importers, exporters, and consumers.” Tracker data showed that US ports handled 1.96 million 20-foot equivalent units (TEU) in June 2025, down 8.4% year over year, and a projected 2.3 million TEU in July 2025, expected to be down 0.5% year over year.
• The Wholesale Trade Industry is one of 11 industries reporting growth in July’s Services ISM Report on Business. Executives in the Wholesale Trade industry reported an increase in business activity, new orders, prices paid for materials and services, employment, and inventories, along with faster supply deliveries and higher order backlogs in July. Additional industries reporting growth during the period were Transportation & Warehousing; Finance & Insurance; Retail Trade; Other Services; Management of Companies & Support Services; Public Administration; Real Estate, Rental & Leasing; Information; Utilities; and Health Care & Social Assistance. Seven industries reporting contraction during the period were Accommodation & Food Services; Construction; Mining; Educational Services; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; and Professional, Scientific & Technical Services. Overall, economic activity in the services sector grew in July for the second consecutive month, with the Services PMI registering 50.1%.