The U.S. economy continued to decline from the end of February through the beginning of April, affecting transportation industry services and demand, the Federal Reserve said Wednesday.
Several districts reported that demand for trucking meant that companies were trimming their fleets and their workforces, the Fed said in its Beige Book report, which it issues eight times a year.
The Cleveland district said trucking companies were cutting costs and the Fed said trucking companies there may also be planning seasonal callbacks in the coming months.
Industries that ship, such as manufacturing and retail, continued to see downturns in districts such as Atlanta. Those industries’ troubles meant falling tonnage and trucking services demand, the Fed said.
Suppliers also saw weakening demands for all classes of automobiles, including light, medium- and heavy-duty trucks. Dealers in the Richmond district blamed the slow sales on the lack of credit for buyers.
The Fed also said that five of the 12 districts are starting to see the economic decline slowing down, and it may be near the bottom or starting to improve. In Kansas City, for example, a trucking company reported an upturn in the commercial and residential moving business.
The report, prepared by the Dallas Fed, was based on information collected from Feb. 24 through April 6.
