Economy Expands Modestly as Transportation Sector Grows, Fed Says
The economy continued to expand modestly from late August to early October as the transportation services sector generally grew, the Federal Reserve said.
A few of the 12 districts reported capacity constraints in railroads and trucking, the Fed said in its Beige Book report released Oct. 15.
In Minneapolis, capacity constraints in freight rail increased demand for trucking services and led to increased stockpiles at some factories.
Atlanta reported strong demand in trucking freight and increased railroad shipments, and a trucking firm in the Kansas City area cited supply chain disruptions and new regulations as having slowed freight traffic.
In Cleveland, contacts from trucking and railroads told the regional Fed that insufficient capacity is a major issue and there is concern about stress on the freight-transport system from an expected record-breaking grain harvest.
Richmond reported softness in exports due to rail and trucking issues, including truck-driver shortages and slowdowns from bottlenecks in rail service. The issues have delayed movement of inland cargo to the ports.
Richmond, Minneapolis, and Kansas City noted trouble in filling openings for truck drivers.
The Fed releases its Beige Book report eight times a year. The report, which covered Aug. 22-Oct. 6, was prepared by the Federal Reserve Bank of Minneapolis.
