The Freight Transportation Services Index (TSI), which is based on the amount of freight carried by the for-hire transportation industry, reached an all-time monthly high in August, 1.5 percent higher than the previous highest level reached one month earlier in July, according to the US Department of Transportation’s Bureau of Transportation Statistics’ (BTS). The August 2017 index level (130.7) rose 6.7 percent from August 2016, the largest year-over-year gain in almost seven years since December 2010.
The August increase in the Freight TSI was driven by a large gain in trucking and smaller gains in air freight and rail intermodal. Water and pipeline freight decreased while rail carloads were stable. The increase took place against a background of growth in several other indicators in August. Employment, personal income and housing starts all increased. The Institute for Supply Management’s Purchasing Managers’ Index showed positive and accelerating growth. However, the Federal Reserve Board Industrial Production index declined by 0.9 percent, with decreases in all sectors.