Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Analysis: Will We Avoid the First-Quarter GDP Blues?

While final economic numbers for 2017 have yet to roll in, economic growth was strong. Will it keep moving higher into the New Year? Analysis by Business Contributing Editor Evan Lockridge.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
January 2, 2018
Analysis: Will We Avoid the First-Quarter GDP Blues?

Source: U.S. Commerce Department Bureau of Economic Analysis

3 min to read


Source: U.S. Commerce Department Bureau of Economic Analysis

While final economic numbers for 2017 have yet to roll in, economic growth was strong. Will it keep moving higher into the New Year?

Ad Loading...

The broadest measure of the economy, the nation’s gross domestic product, grew at an annual rate of 3.3% in the third quarter, according to a Commerce Department estimate released in late November. (A revised estimate was some two weeks away at press time.)

That followed 3.1% annualized GDP growth in the second quarter, marking the first time this total measure of the output of goods and services increased 3% or more for two straight quarters since 2014.

Ad Loading...

Many economists predict things will remain strong once fourth quarter and full-year 2017 numbers are reported, with projected improvements of around 2.7% and 2.2%, respectively. That would still be far off the pace of the halcyon days before the Great Recession, but par for the course since the end of the financial crisis. But can the economy ever do better? Perhaps.

The problem continues to be that pesky first quarter of the year. In 2017, first quarter GDP growth was 1.2%. In the first quarter of 2016 it was just 0.6%. And in the first quarter of 2014, it dropped at a near 1% annual rate. In all three cases it was the lowest GDP reading of the year (unless the final quarter of 2017 becomes a total surprise). In contrast, in 2015, the first quarter had the best GDP performance of the year’s four quarters. And in 2012 and 2013 the first quarter performed near or at the top for each of those years.

The point is that the first quarter of the year is a volatile time. From snowstorms that paralyze freight movements and keep consumers out of stores, to labor disruptions and other factors, the first three months of the year can be a wild ride.

As of press time in mid-December, many economists were predicting first quarter 2018 GDP growth to be in the neighborhood of 2.4%. For the full year, the independent research group The Conference Board and the Federal Reserve forecast total 2018 GDP growth of 2.5%. While that’s below the 2.9% and 2.6% annual rates seen in 2016 and 2015, it still would represent one of the best two-year runs since before the Great Recession.

Good fundamentals are behind the projections. Business investment improved in 2017 after falling the year before, while unemployment is ultra-low. Manufacturing has been on an upswing along with consumer optimism, though both at press time were down a bit from their fall peaks. And housing has more bright spots than dim ones. In other words, more cylinders in the economic engine are more evenly firing.

Ad Loading...

For trucking, a combination of the strong economy, combined with capacity pressure from hurricane recovery and the ELD mandate, is creating a very tight market and rising freight rates for carriers. Whether that carries through the first quarter depends on how mandatory ELD implementation and enforcement is going, along with the usual uncertainties of severe winter weather and other first-quarter surprises.

Subscribe to Our Newsletter

More Fleet Management

TEN disaster prep.
Fleet ManagementMay 1, 2026

How Fleets Can Avoid Equipment Blind Spots in Disaster Response

When the unexpected happens, how you react to, and deal with operational blind spots is critical. Here’s how to keep you recovery on track, when nothing is normal.

Read More →
Illustration of cybersecurity images with "The Cyber Stop" text
Fleet Managementby Ben WilkensApril 30, 2026

AI Security Risks for Trucking Fleets: What to Know About Deepfakes and Agentic AI

As fleets adopt artificial intelligence for routing, maintenance, and load matching, new security risks are emerging. Learn where the vulnerabilities are and how to put the right controls in place.

Read More →
Mobile tablet showing Motus screen against highway background with Motus logo

FMCSA’s Motus System Is Coming. What Fleets Need to Know Now

The long-awaited registration system promises a single portal — and tighter fraud controls.

Read More →
Ad Loading...
CargoNet 2026 Qi report.
Fleet Managementby News/Media ReleaseApril 24, 2026

Cargo Theft Incidents Fall in Q1, but Organized Crime and Impersonation Drive New Risks

CargoNet reports fewer supply chain crime events to start 2026. But losses hold steady as organized crime shifts tactics toward impersonation schemes and high-value goods.

Read More →
Graphic with light bulbs, HDT Truck Fleet Innovators logo, and the word Nominations
Fleet ManagementApril 24, 2026

Nominations Open for HDT Truck Fleet Innovators 2026

Heavy Duty Trucking is searching for forward-looking leaders at trucking fleets as nominations for HDT’s Truck Fleet Innovators 2026. Deadline is May 15.

Read More →
Illustration with trojan horse and lock with inside of cargo container in background
Fleet Managementby News/Media ReleaseApril 23, 2026

New Trojan Driver Cargo Theft Scam Bypasses Carrier Vetting Systems

Cargo theft rings plant operatives as drivers inside legitimate, fully vetted carriers, then execute coordinated thefts that look like a traditional straight theft from the outside.

Read More →
Ad Loading...
ATA Truck Tonnage Index March 2026.
Fleet Managementby News/Media ReleaseApril 22, 2026

March Truck Tonnage Posts Strongest Annual Gain Since 2022

A modest sequential increase capped the strongest quarterly performance in years, signaling continued freight momentum in early 2026.

Read More →
Toll road.
Fleet Managementby Jack RobertsApril 22, 2026

Ohio Turnpike Targets $5.2 Million in Unpaid Tolls from Trucking Firms

More than 300 carriers across 26 states have been sent to collections as the Ohio Turnpike cracks down on toll evasion and delinquent payments.

Read More →
Illustration with ATRI logo and square blocks spelling out "research"
Fleet Managementby Deborah LockridgeApril 20, 2026

'Beyond Compliance,' Regulations, Driver Coaching on ATRI’s 2026 Research List

The American Transportation Research Institute will examine driver coaching, regulatory impacts — including the "Beyond Compliance" concept —and weather disruptions that shape trucking operations.

Read More →
Ad Loading...
Brian Antonellis, senior vice president, fleet operations, Fleet Advantage.
Fleet Managementby Jack RobertsApril 17, 2026

Fleet Advantage's Brian Antonellis on the Growing Need to Replace Old Trucks

Fleet Advantage's Brian Antonellis says it's time for fleets to get back to the fundamentals of good maintenance practices. And that includes replacing older, inefficient equipment.

Read More →