Transport Activity Improving Slightly, Fed Says

The U.S. economy continued to improve modestly from mid-November to early January and conditions have improved for transportation, but economic activity remained low, the Federal Reserve said Wednesday.

Five of the Fed's 12 districts reported mixed or slightly improved transportation activity, with the Atlanta, Cleveland, Dallas and Richmond districts showing increased activity and Kansas City reporting mixed results, the Fed said in its latest “beige book” report, released eight times a year.

Freight transport businesses saw a “slight upturn” in volume, but shipments are still well below their year-ago levels and margins remained depressed. Businesses expect modest volume improvements in 2010.

In Atlanta, freight transportation demand improved modesty from mid-December to mid-January, the Fed said.

Transportation demand fell in Kansas City in November and December, but business leaders there are optimistic about the near future.

The report, prepared by the Philadelphia Fed, was based on information collected from Nov. 21 though Jan. 4.