Fed ‘Beige Book’ Cites Mixed Picture of Trucking

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Federal Reserve districts reported some regional slowdowns in trucking in the first few months this year, the Fed said Wednesday in its latest “beige book” survey of economic conditions.The Fed’s Chicago region saw some signs of strong truck production in the Chicago region.Production of heavy-duty trucks in that region “remained solid, but was expected to tail-off starting in late February, as manufacturers worked through the supply of engines they had stockpiled before stricter emissions requirements took effect at the start of the year,” the Fed said.Industry analysts lowered their forecasts for trailer sales, noting that some shippers were delaying purchases and some large retailers were cutting capital expenditures, the report said.In the Cleveland district, demand for trucking and shipping services continued to soften, with most contacts reporting a decline in shipments of auto-related products, the Fed said.Atlanta trucking companies reported “lackluster” business conditions in January. Two large regional transportation companies recently reported lower than expected revenue, partly because of weaker demand from homebuilders, the Fed said.Railroads in the region said fewer freight shipments of lumber and other construction-related cargoes were somewhat offset by strong international intermodal traffic.The Fed releases the beige book survey eight times a year.