Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Exports Increase, Service Sector Expands

While the U.S. trade deficit increased to a six-month high in February, U.S. exports seem to finally be turning around for the better. Meanwhile, the nation’s service sector improved again last month, and a final report on manufacturing offers hope for this freight-significant indicator.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
April 5, 2016
Economic Watch: Exports Increase, Service Sector Expands

 

3 min to read


While the U.S. trade deficit increased to a six-month high in February, U.S. exports seem to finally be turning around for the better. Meanwhile, the nation’s service sector improved again last month, and a final report on manufacturing offers hope for this freight-significant indicator.

The Commerce Department said on Tuesday the nation’s trade gap increased 2.6% to $47.1 billion as an increase in imports outpaced a gain in exports. However, the 1.6% hike in the exports of goods is the first gain since September. Exports have been down since last year, due to the strength of the U.S. dollar.

Ad Loading...

However, expectations are that the value of the dollar against foreign currencies will continue to ease and exports should grow. Reuters reports a survey last week showed a gauge of new export orders received by manufacturers rose in March to its highest level since December 2014.

While this growth in exports bodes well for the future, the overall increase in the trade deficit is expected to negatively affect first quarter U.S. gross domestic product numbers when they are released later this month.

Service Sector At Highest Level in Three Months

A separate report, also released on Tuesday, shows the nation’s service sector grew again – at its best pace since December, according to a survey of the nation’s purchasing managers.

Ad Loading...

The Institute for Supply Management’s Non-Manufacturing Index registered 54.5% in March, 1.1 percentage points higher than the February figure. A reading above 50% indicates the non-manufacturing sector economy is generally expanding; below 50% indicates the non-manufacturing sector is generally contracting.

The New Orders Index registered 56.7%, 1.2 percentage points higher than in February. The Employment Index increased 0.6 of a percentage point to 50.3% from the February reading of 49.7% and indicates growth after a month of contraction. The Prices Index increased 3.6 percentage points from the February reading of 45.5%, indicating prices decreased in March for the fifth time in the last seven months.

“The majority of respondents’ comments indicate that business conditions are mostly positive and that the economy is stable and will continue on a course of slow, steady growth,” Anthony Nieves, chair of the Institute for Supply Management’s Non-Manufacturing Business Survey Committee.

Twelve of the 18 main service industries reported growth in March.

According to MarketWatch, “The sector accounts for more than 80% of American jobs and is now the bedrock of the economy. An expanding service sector signals the economy is still growing a moderate pace despite weakness in the energy patch, soft exports and lackluster business investment.”

Ad Loading...

Factory Orders, Shipments Decline But March Looks Better

Both reports follow one from Monday showing continued weakness when it comes to new orders and shipments of factory-made goods in February, including in a closely watched barometer of future economic activity. However, an earlier report from March may show there is light at the end of the tunnel

New orders for manufactured goods fell in February 1.7% from the month before, following a downwardly revised 1.2% January drop that was first reported as a 1.6% increase, according to the Commerce Department. This marks 14 out of 19 months that new orders have fallen.

An indictor of future business investment, new capital goods orders minus aircraft fell by a revised 2.5%, worse than an initially reported 1.8% decline last month.

Overall factory shipments, down 10 out of the last 11 months, fell another 0.7% in February following a 0.2% January decline.

The good news is that recent reports for March show this slump in manufacturing may be over. Economic activity in manufacturing expanded for the first time in the last six months, according to the Institute for Supply Management in a report released the first of the month.  A separate report on the manufacturing sector from the financial information services provider Markit also showed sustained growth across the U.S. manufacturing sector during March, but the overall pace of expansion remained subdued.

More Fleet Management

Red Kodiak-branded autonomous tractor with Charger-branded trailer backed up to warehouse
Fleet Management•October 30, 2026

Kodiak Lines Up Fleets for Driverless Trucking

An agreement for 75 trucks, a new Texas freight lane, and progress on safety validation move Kodiak closer to its planned driverless highway launch.

Read More →
Illustration with Star of David and EEOC logo
Fleet Management•by News/Media Release•October 28, 2026

ITS Logistics Settles Religious Harassment Case

The Nevada-based logistics firm agreed to pay more than $396,000 to settle a religious harassment charge involving an employee's Jewish identity.

Read More →
Truck on divided interstate highway driving toward sunrise
Fleet Management•October 27, 2026

Your Trucks Are Busy. That Doesn’t Mean They’re Winning.

High utilization doesn’t always mean strong margins. Looking beyond the current load can help fleets make better dispatch decisions and get more value from each truck’s time.

Read More →
Ad Loading...
ATA economist Bob Costello speaking beside a graph showing truckload operating costs rising as freight revenue per mile declined after 2022.
Fleet Management•by Deborah Lockridge•October 22, 2026

Why This Trucking Recovery Is Different

Freight demand remains sluggish, but rising costs and tougher enforcement have taken enough capacity out of the market to change the outlook for motor carriers.

Read More →
PS Coach tablet interface showing a driver’s coaching inbox, safety event video and coaching advice for a harsh-braking event.
Fleet Management•by News/Media Release•October 21, 2026

Platform Science Adds Dispatch and Safety Tools

Four additions to PS Fleet help fleets monitor loads, manage driver coaching, share truck locations and adjust video system settings.

Read More →
Screen capture showing PrePass Intelligence data on tolls
Fleet Management•by News/Media Release•October 21, 2026

PrePass Intelligence Mines Fleet Bypass, Toll and Safety Data

PrePass Intelligence helps fleets measure bypass savings, flag potential toll overcharges, and spot suspicious transactions by combining data from separate systems.

Read More →
Ad Loading...
Computer screen showing examples of what fleets could ask Motive AI Agents to do
Fleet Management•by Staff•October 20, 2026

Motive Adds AI Agents for Fleet Operations

New tools automate follow-up on fleet data, from maintenance work orders to driver alerts, with two-way voice conversations planned for later this year.

Read More →
Graphic art with a heavy-duty tractor trailer and a work truck with the words "trivia lunch"
Fleet Management•by Lauren Fletcher•October 19, 2026

Can You Beat Our Trucking Trivia Challenge?

Test your truck knowledge with 19 trivia questions from Heavy Duty Trucking Exchange. Can you keep up with the fleet pros?

Read More →
Four horizontal and two vertical video screens show different aspects of BeyondTruck's new compatibility engine
Fleet Management•by Deborah Lockridge•October 19, 2026

BeyondTrucks Adds Rules Checks to Dispatch

New Compatibility Engine checks driver qualifications, equipment requirements and fleet policies before loads are dispatched.

Read More →
Ad Loading...
Gloved hand fueling a truck beside a graphic listing ATRI’s top three trucking concerns for 2026: fuel prices, lawsuit abuse reform and CSA.
Fleet Management•by Deborah Lockridge•October 19, 2026

Diesel Prices Hijack Trucking’s Worry List

ATRI’s annual survey finds cautious optimism about freight, but diesel costs, litigation, and insurance continue to squeeze fleets. Drivers have different priorities on several issues.

Read More →