The American Trucking Association said Wednesday that its advanced seasonally adjusted (SA) for-hire Truck Tonnage Index increased 1.2 percent in June after falling 1 percent in May. June's increase was the largest month-to-month gain in 2012. However, the index contracted a total of 2.1 percent in April and May. Compared with June 2011, the SA index was 3.2 percent higher, the smallest year-over-year increase since March 2012. Year-to-date, compared with the same period last year, tonnage was up 3.7 percent.
For Q2, the SA index was off 0.8 percent from Q1, which was the first decrease in a year. Compared with the second quarter in 2011, the index was up 3.5 percent.
"June's increase was a pleasant surprise, but the lower year-over-year gain fits with an economy that has slowed," ATA Chief Economist Bob Costello said. "Manufacturing output was strong in June, which helped tonnage levels." Costello said he's still 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 US fiscal cliff at the end of the year. Costello lowered his tonnage outlook for 2012 to the 3 percent to 3.5 percent range due to recent economic weakness.