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Released: March 2, 2010
Freight Index Sees Largest Gain Since 2005
January truck tonnage rose 5.7%, the biggest year-over-year increase in five years and solid evidence of a recovery in the industry and the U.S. economy, American Trucking Associations reported last week. The increase in ATA’s seasonally adjusted tonnage index was the biggest year-to-year gain since January 2005 and was the second increase in a row after 14 consecutive months of setbacks. Economists have reported that tonnage likely will continue to grow on the year-over-year basis, in large part because it was so weak a year ago.
Manufacturing in January Expands Rapidly
Manufacturing increased in January for the sixth consecutive month after 13 months of decline, according to a survey of the nation’s supply executives by the Institute for Supply Management. The PMI index of economic activity hit 58.4%, its highest level since August 2004, when it reached 58.5%. Growth in January accelerated as the index jumped 3.5 percentage points compared to December's seasonally adjusted reading of 54.9%.
New orders, production and employment grew in January. Supplier deliveries were slower. Inventories have been contracting for 45 months in a row, since April 2006. But the contraction slowed somewhat in January as the inventories index moved up 3.5 percentage points to 46.5 percent. A PMI reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting. A PMI in excess of 42%, over a period of time, generally indicates an expansion of the overall economy. Therefore, this month’s reading corresponds to a 5.5% increase in GDP and the ninth consecutive month of growth in the overall economy. Approximately XX% of NASSTRAC Regular members are manufacturers.
DOT Furloughs Underway As Funding Debate Continues
The U.S. Department of Transportation is furloughing nearly 2,000 employees without pay starting this week and temporarily shutting down temporarily highway reimbursements to states worth hundreds of millions of dollars as a result of a Senate impasse over federal transportation funding. The action follows the decision by Sen. Jim Bunning’s (R-Ky.) to block key legislation that would have extended tax credits for COBRA health coverage, unemployment insurance for 400,000 people, and a short-term extension of the federal highway trust fund. That fund supports all surface transportation programs for the nation, including highways, bridges, transit and safety inspections.
“As American families are struggling in tough economic times, I am keenly disappointed that political games are putting a stop to important construction projects around the country,” said Transportation Secretary Ray LaHood in a statement. “This means that construction workers will be sent home from job sites because federal inspectors must be furloughed.” Because of the shutdown, said DOT, federal inspectors will be removed from critical construction projects, forcing work to come to a halt on federal lands.
Diesel Climbs 2.9 Cents to $2.861 Per Gallon
Diesel fuel costs rose for the second consecutive week, gaining 2.9 cents to a national average $2.861 at the pump, the U.S. Department of Energy reported to NASSTRAC Monday. Gasoline also rose, gaining 4.7 cents for the second week in a row to an average $2.702 per gallon. Click here for NASSTRAC’s regional pricing graphical index.
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Industry News