Trucking and rail activity increased in April and May, with freight traffic and materials shipments improving in several regions, the Federal Reserve said Wednesday.
Freight transport improved in Cleveland, Atlanta and Dallas, while overall economic activity increased in all 12 Fed regional districts, though many described the pace of growth as modest, the Fed said in its latest “beige book” report.
In the Northeast, a New York regional trucking contact said business improved moderately since the last report and that truckers are seeing some relief from lower diesel prices.
Trucking executives in the Richmond, Va., district noted stronger revenues, in part from the ability to raise prices in some markets, the Fed said.
Atlanta contacts noted an upturn in trucking business, though they cited uncertainty on whether the improvements reflected reduced capacity or an overall increase in demand.
Some manufacturing and homebuilders cited higher commodity and transportation costs and said supply chain capacity constraints were likely responsible for increases.
But they said that those increases were not expected to be passed on to consumers, as lower labor costs relieved pressure on businesses, many of whom said they faced intense competition.
The Fed releases its beige book report eight times a year. Wednesday’s report, which covered the period of April 5 through May 28, was prepared by the Chicago Fed.
