Non-durable goods manufacturing shipments fell 3.5% in April according to the Commerce Department.
However, this decline is not a trend that threatens freight volume because the factors that caused it have already been reversed, said Jim Haughey, Newport Communications senior economist.
"About 90% of the decline was due to the sharp, steep fall in oil prices, with most of the rest likely due to the modest inventory adjustment needed after several weak months for consumer spending," Haughey said.
April shipments were largely filling prewar March orders. After the oil price flip-flop, shipments from the key freight generating manufacturing sectors -- food, clothing, paper, and chemicals -- are all at, or slightly above, the February prewar level. End of April inventories of non-durable goods at manufacturers are only slightly higher.
However, this decline is not a trend that threatens freight volume because the factors that caused it have already been reversed, said Jim Haughey, Newport Communications senior economist.
"About 90% of the decline was due to the sharp, steep fall in oil prices, with most of the rest likely due to the modest inventory adjustment needed after several weak months for consumer spending," Haughey said.
April shipments were largely filling prewar March orders. After the oil price flip-flop, shipments from the key freight generating manufacturing sectors -- food, clothing, paper, and chemicals -- are all at, or slightly above, the February prewar level. End of April inventories of non-durable goods at manufacturers are only slightly higher.
Read more about
Economy
media brand
0 Comments
See all comments