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

Illustration of a chalkboard with a hand drawing an arrow curving away from a partially erased straight arrow with the words "Embracing Change," the Heavy Duty Trucking Logo and the "cover feature" graphic.
Fleet Managementby Deborah LockridgeAugust 1, 2026

How Innovative Trucking Leaders Turn Change Into an Advantage

As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.

Read More →
Illustration of past due invoices with red X on top with background of a truck at a loading dock
Fleet ManagementJuly 27, 2026

Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.

When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.

Read More →
Photo of cable bridge crossing Detroit River
Fleet Managementby Deborah LockridgeJuly 23, 2026

Long-Awaited Canadian Border Bridge to Open in Detroit

For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.

Read More →
Ad Loading...
Blue International heavy-duty truck with Aurora driverless truck software coming head-on on an interstate highway
Equipmentby Deborah LockridgeJuly 22, 2026

Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight

Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.

Read More →
American Trucking Associations for-hire tonnage graph
Fleet Managementby Deborah LockridgeJuly 21, 2026

Freight Tonnage Down, Rates up, as Lower Capacity Powers Trucking Recovery

The recovery from the freight recession continues to be driven by reduction in capacity rather than by increased demand.

Read More →
Cyberstop column header depicting images of ChatGPT prompt on a smartphone and shadowy hooded figure
Fleet Managementby Ben WilkensJuly 17, 2026

Think Your Trucking Fleet Isn't Using Much AI? Think Again

Shadow AI — the use of unauthorized artificial intelligence tools at work — is becoming increasingly common, putting sensitive company data at risk. Learn how trucking fleets can protect sensitive data while embracing AI.

Read More →
Ad Loading...
Photo of semi trucks with Panther, ArcBest, and ABF trailers backed up to docks, with ArcBest logo superimposed on top
Fleet Managementby Deborah LockridgeJuly 17, 2026

ArcBest Consolidates Brands, Cuts Workforce

The company will bring three business units under the ArcBest brand, eliminate about 2% of positions, and expects the changes to generate $40 million in annual savings.

Read More →
Cover of ATRI operational costs study with graph clip art and photo of trucks on highway in the background
Fleet Managementby Deborah LockridgeJuly 15, 2026

Trucking Fleets Faced Record Operating Costs During Third Year of Freight Recession

ATRI's annual operational cost report shows carriers trimmed fleets, delayed equipment purchases, and ran older trucks as expenses continued to outpace freight rates.

Read More →
Micheline AI Assistant.

Michelin Adds AI Assistant to MyConnectedFleet Platform

Michelin’s new generative AI tool delivers instant fleet insights, helping managers analyze fuel use, tire maintenance, vehicle status, and operational performance without manually creating reports.

Read More →
Ad Loading...
LytxOne Platform.

LytxOne Platform Now Features AI, Compliance, and Asset Tracking Tools

New enhancements add AI-powered insights, asset tracking, compliance automation, and configurable privacy controls to Lytx's all-in-one fleet management platform.

Read More →