Rising Truck Shipments Indicate U.S. Economic Expansion Is Intact
By admin - Tue Jun 19, 4:34 am | 0 Comments | 0 views
Increasing shipments of truck are now showing that economic expansion of U.S. is quite intact, even in midst of some concerns that slow down in the retail sales & sovereign-debt crisis of Europe could halt the growth.
2 measures of the trucking activity are now signaling that this industry is still steady & “firmed up” since the mid-May, says Ben Hartford, who is analyst at Milwaukee along with Robert W. Baird and Co. Data complement anecdotal info from the carriers which freight demand wound up for May on strong note post more weakness which expected earlier in this month, he says.
Hartford says that trucking trends reflect economic environment which is really stable and not deteriorating.
For-hire tonnage of truck index had increased about 2.8% for April from one year earlier, up from about 0.2 percent one month prior, which had marked twenty nine months of the growth, based on the data from ATA or American Trucking Associations. Never has economy being contracted with out the tonnage getting negative initially, so figures of trucks are leading indicator, giving “first signal” of slump, says Thom Albrecht, who is analyst at Richmond, Virginia, along with BB&T Capital Markets.
The recommendations of “buy” include Celadon Group Inc., Swift Transportation Co. & Old Dominion Freight Line Inc. 1 more index which tracks movement of the goods between the manufacturers & consumers too is “good barometer” of economy, said director of the transportation analysis @ FTR Associates – Jonathan Starks. Index of FTR of truck loadings of U.S. increased three percent to about 115.9 in the month of April from year before, largest increase since the year 2008, based on the data from Nashville, transportation-forecasting company that is Indiana- based.