What Low Trucker Demand Means for Economy
This is even more evidence of a potential recession. We must pray for our truckers and the health of our economy.
From Fox Business. A sharp, unexpected downturn in trucking demand since the beginning of March could be evidence of a looming economic recession, according to Bank of America strategists.
A Tuesday analyst note from Ken Hoexter, the managing director of Bank of America’s trucking research, shows that shippers see rapidly softening demand for trucks, with a gauge tracking truckload demand falling for the fourth consecutive month to its lowest level since June 2020.
That is “near freight recession level,” Hoexter wrote. On an annual basis, the gauge has plummeted about 23%….
Trucking has proven to be a somewhat reliable indicator for the U.S. economy and is often viewed as a bellwether, because when people buy less, companies ship less and business activity then slows. Broader economic downturns have followed six of the 12 trucking recessions since 1972, according to one analysis conducted in 2019 by Convoy, a trucking data company.
The analysis comes amid growing fears on Wall Street that the Federal Reserve could inadvertently trigger a recession as it takes a more aggressive approach to fighting inflation, which is at the highest level since December 1981. Policymakers raised rates by a quarter-percentage point in March, and have since confirmed that sharper, half-point increases are likely in the coming months, beginning in May….
Traders are now pricing in a 100% chance of at least a half-point rate jump when policymakers meet on May 3-4. It would mark the first time since 2000 that the U.S. central bank raised the federal funds rate by 50 basis points….
Bank of America, Goldman Sachs and Deutsche Bank are among the Wall Street firms that have suggested a recession is possible – or likely – in the next two years….
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