Economy Grew Modestly in May, Fed Says; Trucking Execs Cite Growth, Concerns
The U.S. economy improved at a “modest to moderate” pace” in late April and early May, with transportation services and manufacturing showing gains, the Federal Reserve said in a report.
Manufacturing activity increased across most regions, led by automobiles and residential construction, the Fed said in its “beige book” report, released Wednesday, which it releases eight times a year.
The Richmond and Cleveland districts said new federal hours-of-service regulations, which take effect next month, “may exacerbate difficulty finding truck drivers.”
Cleveland contacts described shipping volume as “robust and higher than expected,” with demand particularly strong from motor vehicle and energy-related customers. Freight executives were optimistic about growth prospects for the rest of the year, with diesel prices trending lower and costs stable for maintenance and equipment.
Heavy-duty truck orders “increased considerably from a year ago,” the Atlanta district reported, although that “reflected equipment replacement rather than additions to overall trucking capacity.”
Chicago contacts cited higher demand for heavy trucks, while Kansas City noted “strong demand for skilled workers,” including truck drivers.
Wednesday’s report, which covered the period of April 6 through May 24, was prepared by the Federal Reserve Bank of Minneapolis.
