Chalk it up as a decent quarter
There was a mixed bag of trucking-related economic reports Friday, though the good seems to outweigh the bad.
The American Truck Dealers, citing trade press reports, notes that third-quarter earnings reports from fleets show freight volumes appear to be rising, though revenues aren’t keeping pace. Also, U.S. truck tonnage fell 7.3 percent in September from the same month last year. That’s not good news unless you consider that it was the best year-to-year monthly showing since November 2008, observes the American Trucking Associations. ATA’s seasonally adjusted for-hire truck tonnage index dipped 0.3 percent in September from August after rising 2.1 percent in August from July.
In his own weekly roundup, ATA Chief Economist Bob Costello cites the U.S. Bureau of Economic Analysis report that real gross domestic product jumped 3.5 percent (annualized rate) during the third quarter. This marks the first time the U.S. economy has grown since the second quarter of 2008 and the largest gain since the third quarter of 2007. The quarter’s good performance was due in part to the feds’ Cash for Clunkers program, a rebounding housing market and a rise in personal consumption.
These trends are good signs for freight, even if you subtract the federal influence of the car-buying program and the stimulus for first-time homebuyers that ends in November. Still, like other economists, Costello continues to take a cautious view about the speed of recovery: “The third quarter GDP reading was encouraging; however, I expect the economy to grow modestly in subsequent quarters as the U.S. consumer continues to face several headwinds, including employment losses, tight credit, and high debt levels.”
– Max Heine