Manufacturing expanded in most U.S. regions in August, though the trucking industry saw some weaknesses related to pricing and a declining housing market, the Federal Reserve said Wednesday.
Overall demand for transportation services showed signs of softening, with Atlanta and Dallas reporting decreased activity, while Cleveland and Chicago cited no change, the Fed said in its latest “beige book” report.
The Fed releases the beige book eight times a year and Wednesday’s report was based on information collected from July 16 through Aug. 26.
Trucking industry price competition in the Cleveland area intensified as demand was characterized as flat, with contacts noting difficulty in passing on increased costs, the Fed said.
Cleveland trucking contacts said their ability to recover 100% of fuel surcharges was beginning to erode and capital expenditures, primarily for truck engines, were seen as flat to declining, though some carriers reported hiring drivers in order to increase capacity.
New heavy-duty truck orders in the Chicago region were weaker than expected, with one analyst pointing to a larger-than-expected impact from the slowdown in housing as a key factor, the report said.
