U.S. economic activity remained generally weak in late April and May, and some trucking companies reported having difficulty passing on high fuel costs to their customers, the Federal Reserve said Wednesday.
The Fed released its latest “beige book” report Wednesday, which was based on information collected from April 8 through June 2.
Truckers in the Dallas district said diesel prices have become too high to be fully covered by fuel surcharges and, in some instances, drivers have stopped their trucks or are leaving the industry.
But one contact at a national freight trucking business in North Carolina reported that recent bankruptcies in the trucking business have led to a slight uptick in demand at his company, the Fed said.
The Atlanta district reported that demand for domestic freight services continued to be weak and that “high diesel prices were lowering the profitability of many trucking companies that have not been able to pass on higher fuel costs to their customers.”
The labor market remained relatively tight, and there was “little change in wage pressures, with the notable exception of increases for some truck drivers,” the Fed reported.
Reports on overall sales of automobiles and light trucks were weak, with several districts indicating that sales of trucks and SUVs declined.
The Fed releases the beige book eight times a year.
