June Tonnage Tepid, Rising 1.8%, ATA Reports
Truck tonnage rose a mild 1.8% in June from a year earlier as factory output and retail sales remained weak, American Trucking Associations reported.
Last month’s seasonally adjusted index reading of 131.1 was down 0.5% from May’s level.
“With flat factory output and falling retail sales, I’m not surprised tonnage was soft in June,” ATA Chief Economist Bob Costello said. “I also remain concerned over the elevated inventory-to-sales ratio for retailers, wholesalers and manufacturers, which suggests soft tonnage in the months ahead until the ratio falls.”
However, Costello said he remains hopeful that an inventory correction will occur this summer.
“When the correction ends, truck freight — helped by better personal consumption — will accelerate,” he said.
In the first half of 2015, tonnage increased 3.4% compared with the same timeframe last year.
In the second quarter, ATA’s index rose 2% year-over-year but fell 1.7% from the first quarter.
The not seasonally adjusted index, which represents the change in freight actually hauled, was 138.2 in June, up 4.2% from May.
