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.)

Ad Loading...

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.

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.

Ad Loading...

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.

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

ATA President Chris Spear.
Fleet Managementby Jack RobertsMarch 17, 2026

ATA’s Spear Warns Fuel Prices, Trade Policy, and Global Conflict Could Stall Trucking Recovery

Speaking at the TMC Annual Meeting in Nashville, ATA President Chris Spear said trucking faces mounting pressure from rising fuel prices, geopolitical instability, and uncertainty around trade policy.

Read More →
Illustration of author headshot with black-and-white old-fashioned rig in the background

New Entrants, Chameleon Carriers, and Safety: Is It Too Easy to Start a Trucking Company?

More than 100,000 new trucking companies enter the industry each year, but regulators manage to audit only a fraction of them. That churn creates opportunities for inexperienced startups — and for “chameleon carriers” that shut down after safety violations and reappear under new identities. Read more from Deborah Lockridge in this commentary.

Read More →
Panel discussion
Fleet Managementby Deborah LockridgeMarch 12, 2026

Fleet Managers Invited to Apply for Exclusive HDT Exchange Event

HDTX is an intimate event that connects heavy-duty trucking fleet managers with industry suppliers through small-group discussions, educational sessions, and structured one-on-one meetings.

Read More →
Ad Loading...
DAT iPhone Widget.
Fleet Managementby News/Media ReleaseMarch 12, 2026

DAT Launches iPhone Widget to Help Owner-Operators Find Loads Faster

New DAT One feature shows top-paying loads directly on an iPhone’s home screen, helping carriers react faster to spot-market opportunities.

Read More →
Optimal Dynamics Scale screen shot
Fleet Managementby News/Media ReleaseMarch 12, 2026

Optimal Dynamics Launches AI System to Help Carriers Choose Better Freight

Optimal Dynamics says its new Scale platform uses AI agents and optimization to help carriers find and secure freight that improves network balance and profitability.

Read More →
DAT March 2026 trucking conditions.
Fleet Managementby Jack RobertsMarch 12, 2026

DAT: Flatbed Demand Climbs as Van and Reefer Rates Soften

DAT Freight & Analytics data shows tightening flatbed capacity, easing produce markets, and softening van and reefer rates.

Read More →
Ad Loading...
YouTube thumbnail with Mike Roeth of NACFE saying "NACFE's Messy Middle: Which Fuel Wins?"
Fuel Smartsby Deborah LockridgeMarch 11, 2026

Run on Less “Messy Middle” Data Shows Multiple Paths Forward for Truck Powertrains [Watch]

NACFE's Run on Less - Messy Middle project demonstrates the power of data in helping to guide the future of alternative fuels and powertrains for heavy-duty trucks.

Read More →
Illustration of crowded New York street overlaid with dollar signs
Fleet Managementby Deborah LockridgeMarch 11, 2026

Federal Court Lets NYC Congestion Pricing Continue

A federal court ruling allows New York City’s congestion pricing program to continue, leaving truck tolls in place for fleets delivering into Manhattan.

Read More →
Fontaine Modification Access365
Fleet Managementby News/Media ReleaseMarch 10, 2026

Fontaine Modification Launches Real-Time Truck Modification Tracking Portal

Fontaine Modification has introduced a new customer portal designed to give fleets real-time visibility into the truck modification process, addressing one of the most common questions fleet managers face: “Where’s my truck?”

Read More →
Ad Loading...
FTR Tucking Conditions March 2026.
Fleet Managementby Jack RobertsMarch 10, 2026

FTR: Trucking Conditions Index Climbs to Highest Level Since 2022

Strong freight rates, rising volumes and tighter capacity push trucking conditions higher, though diesel prices could temper gains in the near term, FTR cautions.

Read More →