News Briefs - Nov. 15
The Latest Headlines:
- N.Y. Factory Index Rises in November
- Congress to Return for Lame-Duck Session
- Pace of Manufacturing Growth Slowing, Journal Says
- NMFTA Names New Chairman
- Burlington Northern Says Sales, Profits to Rise in 2005
- At September Meeting, Fed Was Cautious on Economy
- Congress to Return for Lame-Duck Session
N.Y. Factory Index Rises in November
The Federal Reserve Bank of New York said its index of manufacturing activity rose to 19.8 in November from 17.4 the month before.Readings above zero indicate expansion. The Empire State survey is down from its average of 33.4 during the first six months of 2004.
Economists forecast the index would rise to 20.6, Bloomberg reported.
The measure of inventories fell to zero in November from 1.67, while the gauge of the number of employees fell to 10.8 from 17.7. Transport Topics
Congress to Return for Lame-Duck Session
Members of Congress are expected return to work on Tuesday for a lame-duck session amid hope they can finish several spending bills stalemated all year, news services reported.Congress is also expected to vote on whether to raise the government's borrowing limit on the national debt and confront a stalemate on legislation to reshape intelligence agencies.
Looking ahead, Senate Majority Leaders Bill Frist of Tennessee said President Bush's plans to overhaul tax laws and Social Security would get top billing in the next Congress, AP said. Transport Topics
Pace of Manufacturing Growth Slowing, Journal Says
Although forecasters are expecting the manufacturing sector to produce more goods next year than this year, the pace of growth is slowing and there are few signs of a pickup in factory employment, the Wall Street Journal reported Monday.The manufacturing sector is one of trucking’s largest and most important customers.
Starting with the third quarter of 2003, output for three consecutive quarters surged 6.1%, 6.3%, and 7.2%. However, in the third quarter this year, growth dropped to 4.4% and is projected to grow only slightly more in the fourth, then decline through next year, the Journal said.
And since manufacturing accounts for about 16% of the gross domestic product and 11% of nonfarm employment, what happens in the sector has an impact on the broader economy, the article said. Transport Topics
NMFTA Names New Chairman
The National Motor Freight Traffic Association said Nov. 8 it named Rick Bowden as chairman. Bowden is vice president of traffic and pricing at New England Motor Freight.NMFTA is a nonprofit corporation that evaluates the transportation characteristics of goods moving in interstate commerce and classifies products in one of 18 classes based on density, stowability, ease of handling and liability. It said its membership was comprised of more than 1,000 motor carriers.
The group also said Dean Aden, secretary-treasurer of Brown Transfer Co., was named chairman of its national classification committee. Transport Topics
Burlington Northern Says Sales, Profits to Rise in 2005
Freight railroad Burlington Northern Santa Fe Corp. said Friday its sales would increase as much as 8%in 2005 on higher demand for on consumer goods and price increases, Bloomberg reported.Chief Financial Officer Thomas Hund said on a conference call that per-share earnings for 2005 would increase at a rate in the “mid-teens,” Bloomberg said.
Burlington Northern has led North American railroads with revenue increasing 15% through the first three quarters of 2004. Transport Topics
At September Meeting, Fed Was Cautious on Economy
At their September meeting, Federal Reserve Board policy makers said more interest rate increases would be needed to keep inflation under control, but it should be tied to the economy's overall performance, according to the minutes of the meeting released late last week.The Fed raised rates by another quarter-point this week to 2%, the fourth increase this year. The figure reached a 46-year low of 1% earlier this year, before the Fed began its tightening moves in late June.
However, at its Sept. 21 meeting, Fed members were concerned upcoming economic growth would be less brisk than previously anticipated, meaning they could take a brief pause from additional rate hikes in the months ahead, the Journal reported. Transport Topics
