Economic activity expanded at a “modest to moderate pace” in late November and December as holiday retail sales showed “significant gains” from a year ago, the Federal Reserve said Wednesday.
Demand generally rose for shipping and transportation services, with New York and Atlanta reporting significant increases in truck tonnage, the Fed said in its “beige book” report, issued eight times a year.
A trucking industry contact in the New York district said tonnage was up 6% in November from a year ago, the Fed said.
In the Cleveland district, trucking contacts predicted volumes would grow at a slow, steady pace in 2012, while also reporting higher prices for parts, especially tires, and some volatility in fuel prices.
Transportation firms in the Atlanta, Cleveland and Kansas City districts reported difficulty recruiting qualified drivers, the Fed said.
In the Kansas City district, transportation firms said activity remained well above levels from a year ago.
Intermodal firms in the Dallas district reported steady cargo volumes and positive outlooks for the first half of 2012, the Fed said.
Demand for transportation services remained largely flat in San Francisco.
Wednesday’s report, which covered the period of Nov. 18 through Dec. 30, was prepared by the San Francisco Fed.
