Headlines
TRUCKING: Strengthening freight rates support a high floor on market conditions for carriers.
RAILCAR: The 2021 carload outlook took another step down in the latest month and now sits at just over 5% compared with 2020.
INTERMODAL: International and domestic traffic each weakened in September as volumes are metered by providers.
SHIPPERS: Market conditions are stalled at a level unfavorable to shippers.
Summary
The economy sent mixed signals in September as consumer spending remained strong, but the industrial sector was weaker. However, the lingering effects of Hurricane Ida played a major role in weaker industrial production. The other big hit was the ongoing semiconductor shortage, which once again led to a big drop in automotive output.
• Payroll employment in October rose by a solid 531,000 jobs, and September figures were revised upward substantially. Employment remains 4.2 million jobs, or 2.8%, below February 2020, seasonally adjusted. The unemployment rate fell, but labor participation was unchanged.
• Consumer spending was up 0.6% in September. Gains in services and goods were balanced for a change. Spending on non-durable goods moved higher while durable goods spending eased slightly.
• Freight volumes remain constrained by supply chain disruptions, and those constraints are keeping freight rates high in all modes.
