Weekly Transportation Update: Manufacturing output rises in May and is basically flat y/y

The industrial and consumer sectors saw decent performances in May, but the housing sector remained quite weak as both construction and sales declined. Manufacturing output posted a solid gain. Retail sales barely moved in nominal terms, but a significant issue was pricing for consumer commodities, which declined 0.2% m/m in May.

Another pricing move in the latest week was not so encouraging for freight transportation as diesel prices rose for the first time in 10 weeks.

• Real retail trade sales increase modestly in May.
• Housing starts and permits fall to their lowest levels since June 2020.
• Spot rates in trucking continue to hold steady overall.
• Rail carload volume in the latest week is least negative y/y since late March.