Weekly Transportation Update: Real consumer spending was sluggish in August as inflation cooled

In August, consumer spending increased slightly by 0.1%, while the U.S. saving rate rose due to data revisions. The PCE price index continued to cool, and retail inventories remained relatively stable compared to sales. Manufacturing orders showed no significant change, and new home sales declined after a strong increase in July. Mortgage rates hit their lowest point in two years, whereas diesel prices rose for the first time in 11 weeks. Dry van spot rates dropped to their lowest since June 2020, though general freight contributed to higher trucking revenues. Meanwhile, a port strike looms unresolved, and intermodal traffic growth hit its lowest point in two months.