News Briefs - May 28
The Latest Headlines:
- Chicago-Area Factory Index Rises in May
- Yellow Roadway Has Extra Capacity, Zollars Says
- Intermodal Rail Traffic Sets New Record, AAR Says
- U.S. Personal Spending, Income Both Rise in April
- Oil Prices Ease as OPEC Eyes Quota Boost
- NHTSA Annnounces April Recalls
- Yellow Roadway Has Extra Capacity, Zollars Says
Chicago-Area Factory Index Rises in May
A survey of Chicago-area manufacturers rose to a 16-year high of 68.0 in May from 63.9 in April, a private business group reported Friday.The National Association of Purchasing Managers-Chicago also said its indices measuring new orders, employment and prices paid to manufacturers all rose during the month.
The Institute for Supply Management, the national counterpart to the regional business group was scheduled to release its national report on factory activity on June 1. Transport Topics
Yellow Roadway Has Extra Capacity, Zollars Says
Less-than-truckload giant Yellow Roadway Corp. is operating at about 90% of capacity, Chief Executive Officer William Zollars told Bloomberg News.“We probably have about 10% excess capacity right now at both Yellow and Roadway, “ Zollars said in an interview. “We’ll be able to take on the economic recovery pretty effectively as we go through 2005.”
Zollars also said in the interview that the company planned to pay off $100 million in debt during 2004.
In December, Yellow Corp. completed the acquisition of larger rival Roadway Corp. The purchase price was $1.05 billion. Transport Topics
Intermodal Rail Traffic Sets New Record, AAR Says
A record number of intermodal trailers and containers were hauled by American railroads last week, the national trade group representing the rail industry reported Thursday.The Association of American Railroads said that in the week ended May 22, U.S. rail companies hauled 218,206 intermodal loads, 14.4% more than they did in the same week last year.
Container hauls rose 13.9% to 161,480 from 141,773, the report said. AAR said trailer hauls jump 15.9% to 56,726 from 48,939.
Intermodal rail is the segment of the industry that competes most directly with long-haul trucking. Transport Topics
U.S. Personal Spending, Income Both Rise in April
The Commerce Department said Friday that personal spending rose 0.3% in April, its smallest advance in six months.Also during April, personal income rose 0.6%, following up a 0.4% gain in March.
Economists said that rising borrowing costs have led to slowing personal spending, but that an improving job market may continue to hold personal income up, Bloomberg reported. Transport Topics
Oil Prices Ease as OPEC Eyes Quota Boost
After a week of record petroleum highs, oil product prices fell back in late trading Thursday, in anticipation of a June 3 OPEC meeting at which the cartel may raise its quotas, Bloomberg News reported.OPEC president Purnomo Yusgiantoro said the cartel may raise its quota by 2 million barrels a day, Bloomberg reported.
Crude oil closed below $40 a barrel Thursday for the first time this week, and oil futures fell to a three-week low, Bloomberg said.
Gasoline futures also tumbled on prospects that OPEC members will raise production quotas at their meeting in Beirut, Lebanon, Bloomberg said. Transport Topics
NHTSA Annnounces April Recalls
The National Highway Traffic Safety Administration announced recalls in April of nearly 5,000 medium- and heavy-duty trucks produced by three manufacturers.In an announcement released Thursday, NHTSA announced the following recalls:
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