The Freight Transportation Services Index (TSI), which is based on the amount of freight carried by the for-hire transportation industry, fell 0.8 percent in June from May. The seasonally adjusted index fell after reaching an all-time high in May, according to the US Department of Transportation’s Bureau of Transportation Statistics’ (BTS). The June 2017 index level (126.2) was 33.3 percent above the April 2009 low during the most recent recession.
In June, the Freight TSI declined by 0.8 percent from the previous month due to significant decreases in trucking and water while air freight and rail carloads and intermodal grew. Pipeline remained steady. The increase ran counter to mostly rising trends in other economic indicators. Employment, housing starts and personal income grew. The Federal Reserve Board Industrial Production index rose by 0.4 percent in June, due to growth in manufacturing and mining. The Institute for Supply Management Manufacturing index rose to 57.8, indicating accelerating growth.
While the monthly TSI declined, the quarterly TSI covering a three-month period rose. The 1.4 percent second quarter growth in the freight TSI was consistent with the accelerating pace of GDP growth, which reached 2.6 percent in second quarter 2017, up from 1.4 percent growth in the first quarter.