We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Different surveys, same message: U.S. economy has cooled
newsworthy

Different surveys, same message: U.S. economy has cooled

July 3, 2012
Mark B. Solomon
No Comments

Two reports, one freight-specific and the other more general in nature, are adding to the mounting evidence that U.S. economic activity has cooled.

A quarterly survey of 500 U.S. and Canadian shippers released Tuesday by Morgan Stanley & Co. found that respondents were scaling back their economic forecasts due to macro-economic anxieties. According to "Freight Pulse 26 Shipper Survey: Macro Concerns Weigh on Freight Outlook," shippers, in aggregate, gave the U.S. economy the lowest grade since September of last year.

At the same time, respondents seem to have put their inventory restocking plans on hold. About 49 percent in the June survey said they plan to reduce inventory levels, up from 34 percent in March. About 14 percent said they would increase inventories, down from 23 percent in the last survey period.

Traffic expectations have also slowed for all trucking groups, the survey said. Rate expectations have cooled as well, a positive sign for shippers but not enough to offset concerns about volume declines. Shippers expect truckload capacity to remain tight for the next six months, according to the survey.

About 31 percent of all respondents expect to boost their rail volumes by 1 to 3 percent during the next six months. Nearly 44 percent expect rail rates to increase between 3 and 5 percent during that time. Parcel growth is expected to accelerate across all three categories: domestic air, domestic ground, and international, the report said.

ISM data shows weakness
The uneven numbers from the transport side came the same day the Institute for Supply Management (ISM) released its June data on manufacturing activity that showed economic activity contracted from the prior month. The Purchasing Managers Index (PMI), an aggregate of 10 sub-sectors of economic activity, fell to 49.7 percent from 53.5 percent in May. A reading above 50 percent indicates an expanding economy, while a reading below 50 reflects a contracting economy, ISM said.

The PMI stands at its lowest level since July 2009, according to the data.

An index that tracks new orders plunged 12.3 percentage points in June over May, falling to its lowest level since April 2009. Export orders fell 6 percent month-to-month, as weakness in the Euro Zone and a slowdown in China dampened export activity.

The one bright spot in the index was a 10.5 percentage-point drop in the index for raw materials prices. Since the world emerged from the 2008–09 recession, many in the supply chain were concerned that rising commodity prices would spark inflation and choke off growth.

An executive in the plastics and rubber products industry was quoted in the survey as saying that a "significant raw materials price correction [is] underway."

Transportation
KEYWORDS Institute for Supply Management (ISM) Morgan Stanley & Co.
  • Related Articles

    Macy's extends same-day delivery with a different kind of carrier in the driver's seat

    U.S. Chamber: International trade can help get U.S. economy moving

    U.K. firm plans same-day delivery service in U.S.

Marksolomon
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

Recent Articles by Mark Solomon

Coming together for road safety: interview with Joshua Girard

Off the rails

Freight rate spikes shaking up the C-suite

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • A look into the future of robotics

  • Exotec Skypod System Adopted by Gap Inc. to Optimize Returns Process

  • Roadrunner Freight bolsters LTL capabilities with $50 million in new backing

  • A primer on warehouse robots

  • Truck driver availability tightens to three-year low, ACT says

Now Playing on DCV-TV

B56eecf1 4687 42a4 865e c3f3223925f7

How serious are you about controlling your freight costs?

DCV-TV 4: Viewer Contributed
If you’ve been feeling like your freight budget is under attack, you’re in good company! Whether you’re looking at the ocean, parcel, LTL, truckload, or air markets, capacity is tight and prices are soaring.RELATED RESOURCES:Rapid AssessmentVisit our websiteSubscribe to our YouTube Channel

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Fortify Your Operational Resilience

  • Cold Storage Automation: Leveraging Advanced Technologies to Meet Increasing Demand

  • The modern warehouse: Maximizing productivity and capacity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing