Freight Shipments Decline to Lowest October Level In Four Years, Cass Index Shows
Freight shipments declined last month to the lowest October level in four years, the Cass Information Systems index showed, including a 4.7% drop from September and a 5.3% decline from October of last year.
The report noted that October’s sequential sag was in line with trends in recent years and consistent with the downward path in U.S. economic growth. In the third quarter, gross domestic product rose just 1.5% after 3.9% improvement in the second quarter, according to the Commerce Department.
“Consumer sector goods are, by far, the strongest in the market now,” the report said. “This is the silver lining in the storm clouds because it means that consumers are still in the game.”
Consumer spending rose 3.2% in the third quarter after a 3.6% rise in the second quarter.
“This month’s decline was much sharper than in recent years and can be directly correlated to falling imports and exports as well as decreased domestic manufacturing levels,” the report said, also citing bloated inventories.
