The American Trucking Association reported Tuesday that its advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 0.7 percent in May after falling 1.1 percent in April. Compared with May 2011, the SA index was 4.1 percent higher, the largest year-over-year increase since February 2012. Year-to-date, compared with the same period last year, tonnage was up 3.8 percent.
"Two straight months of contractions is disappointing," ATA Chief Economist Bob Costello said. "The drops in tonnage are reflective of the broader economy, which has slowed. The good news is that the decrease in fuel prices will help support retail sales going forward, which is a big part of truck tonnage," he said. As a negative, Costello said he's concerned about businesses sitting on cash instead of hiring more workers or spending it on capital, both of which would give the economy and tonnage a shot in the arm, as they are worried about Europe and the so-called US fiscal cliff at the end of the year. He also reiterated last month's comment: "Annualized tonnage growth should be in the 3 percent to 3.9 percent range this year."