Economy, Transportation Services Show Improvement, Fed ‘Beige Book’ Says
The U.S. economy continued to expand at a moderate pace early this year, with several areas reporting increases in transportation services demand, the Federal Reserve said.
Transportation firms in the Fed’s Cleveland, Atlanta, and Kansas City districts all reported increases in shipments, though cited concerns over rising fuel costs, the Fed said in its latest “beige book” report released Wednesday.
Cleveland area business contacts hinted at the possibility of hiring more drivers but also expressed concern over the tightening of the labor pool, the Fed said.
Nationwide, “labor market conditions continued to strengthen modestly, with all districts reporting some degree of improvement,” the report said.
Atlanta area trucking firms noted both stronger demand and a firming of shipment prices, though indicated they have been facing “increasing fuel costs and extremely adverse weather conditions, which have slightly affected overall activity.”
Trucking firms said they anticipate capacity to remain tight as seasonal demand for shipments increase, while railroad companies reported that volumes remain strong for coal, automotive parts and container imports.
In the Chicago area, demand for heavy machinery and trucks increased, with rental companies adding to fleets and end-user demand increasing, the Fed said.
The Fed releases its beige book report eight times a year. Wednesday’s report, which covered the period of Jan. 4 through Feb. 18, was prepared by the Atlanta Fed.
