Economy, Transport Activity Show Modest Increases, Fed Says
The U.S. economy improved modestly from October through mid-November as consumer spending rose in most areas and transportation activity showed some signs of improvement, the Federal Reserve said Wednesday.
Transportation sector improvement was cited in four of the Fed’s 12 districts — the Chicago, St. Louis, Cleveland, and Kansas City regions — the Fed said in its latest “beige book” report, released eight times a year.
Cleveland district freight executives reported little change in shipping volume, though two said they plan to purchase replacement equipment during the next 12 months.
“We’re seeing some green sprigs out there; we just don't know yet if it's grass or weeds,” one Richmond region transportation official said in the report.
Expectations for future factory activity were generally optimistic in the Kansas City area, with the transportation sector boosting its sales and capital spending.
One contact said a reduction in the number of competing carriers has allowed some trucking companies to maintain their freight volume despite lower overall demand, the report said.
The report, prepared by the New York Fed, was based on information collected from Oct. 13 though Nov. 20.
