Cass Freight Index Drops 5.8% Year-Over-Year
The Cass Freight Index that primarily measures truck shipments dropped 5.8% year-over-year last month, but it was 1.3% higher than April amid some sequential signs of modestly improving freight conditions.
“The current economic outlook is volatile, which has led to slow, uneven growth,” said the report, which includes analysis and commentary by economist Roz Wilson, head of consulting firm Freight Matters. The report noted that May freight levels were the best so far this year, based on payment of freight bills by Cass, an affiliate of a St. Louis bank. The index measures rail, air and barge shipments as well as predominant truck shipments.
“Predicting the second half of 2016 and beyond gets more complicated with each economic report released,” the report said. “We basically are at a standstill waiting for the forecasted strengthening.”
Her report cited downward pressure from the manufacturing sector and a weak jobs report, as well as positive trends in consumer spending.
Cass also measures freight spending, which dropped on a sequential and year-over-year basis. Wilson attributed the declines to a reduction in freight rates.
