October 11, 2006 7:59 AM, EDT

Transportation Services Index Posts Largest Decline in Five Years

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he U.S. Transportation Department’s transportation services index fell 2.5% in August, its largest monthly decline in five years, DOT said last Thursday.

The freight index, which fell for the third consecutive month, dropped 3.2% in August from July, its steepest monthly slide since September 2001, DOT said.

The index also posted its first August-to-August decline since 2002, dropping to 108.1 from 112.0 in July.

For the first eight months of 2006, the TSI fell 2.6%, the first December-to-August decrease since 2003.

TSI is a seasonally adjusted monthly index measuring the output of services provided by the for-hire transportation industries, including railroad, air, truck, inland waterways, pipeline and local transit.

It includes data dating back to 1990, with changes measured against the base year of 1996. DOT said the index is still under development and is considered experimental.