U.S. economic activity, including trucking and freight transportation, was sluggish in July and August, according to a Federal Reserve report released Wednesday.
The Fed surveyed its 12 regional districts in its “beige book” report, saying that the Boston, Cleveland, Atlanta and Dallas regions all noted falling demand for freight and transportation services, and that firms in those industries reported higher fuel costs negatively affecting their margins.
The Fed releases its “beige book” report eight times a year, and the latest version was based on information collected from July 15 through Aug. 25.
Many districts described business conditions as weak, soft or subdued, as Cleveland and St. Louis reported some weakening since the previous report, while Boston and New York noted some signs of stabilization and Kansas City reported a slight improvement.
In the Cleveland district, trucking industry hiring was limited to driver turnover, and any wage increases fell within industry norms, the Fed said.
Contacts in the Boston region serving the residential and commercial construction industries, auto makers, commercial airlines, non-aviation transportation, semiconductor makers and the healthcare industry report declines in orders or sales.
One real estate contact in Greensboro, N.C., reported moderate sales activity and was hopeful that business would pick up when a “large trucking firm moves its headquarters to the area in the coming months,” apparently referring to the recently announced impending move of Mack Trucks’ headquarters to Greensboro, from Allentown, Pa.
