Let’s look into what’s happening in the industrial sector, specifically manufacturing. It’s no secret that manufacturing is a major driver of freight demand, so understanding its trends can give us a clearer picture of what’s on the horizon for logistics and supply chains. Today, we’ll focus on two key metrics: new orders for manufactured goods and the Institute for Supply Management’s (ISM) manufacturing index.
In November, total new orders for durable goods fell 1.1% m/m, but excluding transportation equipment (volatile sectors like vehicles and aircraft), they were nearly flat.
Core capital goods (nondefense, excluding aircraft) rose 0.7% m/m, the best gain since August 2023, and were up 1.1% y/y—a solid sign of investment strength. Adjusted for inflation, these orders still grew 0.5% m/m but remain 1.6% lower y/y, showing gradual improvement.
The ISM manufacturing index improved in December, up 0.9 points to 49.3%. While still contracting (below 50%), the sector shrank more slowly. Even better:
Despite challenges, the data shows resilience in manufacturing. Rising orders and improving ISM metrics suggest freight demand tied to this sector may stabilize or grow modestly.
What trends are you seeing in your operations? Let’s discuss!
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