Economy, Transport Services Shows Mixed Activity, Fed Says

The Federal Reserve said Wednesday that the U.S. economy grew at a slower pace in more areas of the country in the six weeks through mid-July, while trucking and transportation services showed mixed activity.

“Economic activity continued to grow [but] the pace has moderated in many districts,” the Fed said in its “Beige Book” survey, which it releases eight times a year. Growth slowed in eight of the Fed’s 12 regions, compared with four in the previous beige book.

High fuel costs continued to challenge transportation firms’ margins in the Atlanta region, the Fed said, adding that trucking industry costs for tires, replacement parts and new vehicles remained high.

Transportation services firms in the Kansas City district reported increased activity and were optimistic about future bookings, although several trucking contacts cited continued difficulty attracting qualified over-the-road drivers,

Railroad industry contacts in the Dallas region noted a broad-based increase in shipments. Container volumes fell, but contacts said demand has strengthened from a year ago due to energy-related activity.

Reports from construction-related manufacturers were mixed, though overall activity levels appeared to be unchanged.

Construction-related outlooks were generally flat to slightly higher, and contacts said there will not be much rebound until residential and commercial construction recover, which may take longer than previously expected, the report said.

Wednesday’s report, which covered the period of May 28 through July 15, was prepared by the Philadelphia Fed.