The American Trucking Associations' advanced seasonally adjusted for-hire Truck Tonnage Index increased for the third time in the last four months, rising 0.7 percent in July. The latest increase followed a 0.4 percent contraction in June.
On a seasonally adjusted basis, the tonnage index expanded to 113.4 (2000=100) from 112.6 in June. July's index level was the highest since a 113.7 reading in February of this year. Compared to July 2005, the tonnage index was 1.6 percent lower. Year-to-date, the truck tonnage index was down 1.8 percent, compared with the same period in 2005. The not seasonally adjusted index contracted 8.7 percent from June to 109.0.
"Tonnage volumes increased nicely in July, but the industry has yet to fully recover from the large decrease in volumes during the first quarter of the year," said ATA Chief Economist Bob Costello. "There is no doubt the three month-to-month increases during the last four months are very positive, although I'd feel even better if the index was growing on a year-over-year basis as well." Costello attributed the July increase to gains in retail sales and manufacturing activity.
"Ever since the large declines in February and March, the tonnage index has risen nicely, gaining 2.7 percent in total," he noted. "With industry capacity fairly tight heading into the traditional peak season, tonnage levels don't have to increase significantly for the industry to maintain its favorable supply-demand balance."
Trucking serves as a barometer of the U.S. economy because it represents nearly 70 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods.
Trucks hauled 10.7 billion tons of freight in 2005. Motor carriers collected $623 billion dollars, or 84.3 percent of total revenue earned by all transport modes.
ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the tenth day of the month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.
On a seasonally adjusted basis, the tonnage index expanded to 113.4 (2000=100) from 112.6 in June. July's index level was the highest since a 113.7 reading in February of this year. Compared to July 2005, the tonnage index was 1.6 percent lower. Year-to-date, the truck tonnage index was down 1.8 percent, compared with the same period in 2005. The not seasonally adjusted index contracted 8.7 percent from June to 109.0.
"Tonnage volumes increased nicely in July, but the industry has yet to fully recover from the large decrease in volumes during the first quarter of the year," said ATA Chief Economist Bob Costello. "There is no doubt the three month-to-month increases during the last four months are very positive, although I'd feel even better if the index was growing on a year-over-year basis as well." Costello attributed the July increase to gains in retail sales and manufacturing activity.
"Ever since the large declines in February and March, the tonnage index has risen nicely, gaining 2.7 percent in total," he noted. "With industry capacity fairly tight heading into the traditional peak season, tonnage levels don't have to increase significantly for the industry to maintain its favorable supply-demand balance."
Trucking serves as a barometer of the U.S. economy because it represents nearly 70 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods.
Trucks hauled 10.7 billion tons of freight in 2005. Motor carriers collected $623 billion dollars, or 84.3 percent of total revenue earned by all transport modes.
ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the tenth day of the month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.
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