The Federal Reserve gave a generally positive assessment of the U.S. economy last week as manufacturing and job growth picked up, but the Fed’s report cited some regional slowdowns in trucking and truck manufacturing.
Sluggish demand or declines in trucking and shipping were noted in half the Fed’s regional districts, the Fed’s “Beige Book” report released June 13 said. Dallas was the only area to note a pickup in the trucking business.
The survey was based on information collected from April 16 through June 3.
Manufacturing activity was up in a majority of districts and the strength of the economy, along with higher costs of fuel and food, has not increased overall pressures on wages and prices, said the Beige Book, which is released eight times a year.
In the Cleveland district, “demand for trucking and shipping services has softened a bit,” the report said. Truckload shipping softened due to a slower pace of economic activity and some overcapacity, it said.
Industry expectations for revenue growth varied for second-half growth. Productivity in the trucking industry continues to be constrained by hours-of-service changes, congestion and driver turnover, among other industry factors.
New truck orders from domestic shippers remained weak, the Chicago district reported, in part reflecting the increased costs of equipment to meet engine emissions requirements. But some analysts said that heavy truck production would stabilize later the year.
In St. Louis, the trucking industry reported a substantial decline in both inbound and outbound tonnage.
Dallas was a notable exception, with improved transportation activity, the Fed said. “Cargo volumes improved at parcel shipping firms and container trade remains robust, with growth largely from overseas markets,” the report said.
