The US 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 September, 0.2 percent higher than the previous highest level reached one month earlier in August, according to the US Department of Transportation’s Bureau of Transportation Statistics’ (BTS). The September 2017 index level (129.2) was 36.3 percent above the April 2009 low during the most recent recession.
The level of for-hire freight shipments in September measured by the Freight TSI (129.2) reached an all-time high for the third consecutive month. The 6.7 percent gain over September 2016 was the largest year-over-year rise since December 2010.
Significant increases in trucking and pipeline led the September increase of 0.2 percent while other modes declined. The TSI increase took place against a background of mixed results for other indicators. The Federal Reserve Board Industrial Production index rose by 0.3 percent in September, with increases in all sectors. Employment rose, Personal income grew and the Institute for Supply Management Manufacturing index rose to 60.8, indicating accelerating growth. Meanwhile, housing starts fell by 4.5 percent.
The 2.4 percent increase in Freight TSI in the third quarter was consistent with the pace of growth in GDP, which was 3.0 percent in the third quarter. GDP growth had been 3.1 percent in second quarter, when Freight TSI also grew. GDP growth was slower in the first quarter of 2017, when Freight TSI declined.