For-hire truck tonnage index decreases in June
Jul 31, 2006 7:38 AM
The American Trucking Associations (ATA) advanced seasonally adjusted for-hire Truck Tonnage Index decreased for the first time in three months, falling 0.7 percent in June. June's drop followed respective gains of 2.0 percent and 0.4 percent in April and May.
"The economy has slowed some from the first quarter of the year; however, there continues to be a favorable supply-demand market," said Bob Costello, ATA chief economist. "Also, considering the solid growth in manufacturing production, especially in durable goods products, we expect to see a strong fall freight season."
On a seasonally adjusted basis, the tonnage index fell to 112.3 from 113.1 in May. June's tonnage index was 1.4 percent lower, compared with a year earlier. Year-to-date, the truck tonnage index was down 1.9 percent, compared with the same period in 2005. The not seasonally adjusted index also contracted 0.7 percent from June to 119.1.
Trucking serves as a barometer of the economy because it represents nearly 70 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, ATA pointed out. Trucks hauled 10.7 billion tons of freight in 2005. Motor carriers collected $623 billion dollars, or 84.3 percent of total revenue earned by all transport modes.
ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the tenth day of the month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.
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