Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Growth Continues, Sluggish in Some Areas

While the amount of U.S. industrial production was unchanged in October after falling 0.2% in September, manufacturing managed to squeeze out a gain, as optimism in the housing market continued amid signs of slower than usual growth.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
November 16, 2016
Economic Watch: Growth Continues, Sluggish in Some Areas

 

4 min to read


While the amount of U.S. industrial production was unchanged in October after falling 0.2% in September, manufacturing managed to squeeze out a gain, as optimism in the housing market continued amid signs of slower than usual growth.

Ad Loading...

Manufacturing increased 0.2% from the month before, according to a Federal Reserve report released Wednesday, the same increase as September’s gain. The amount of manufacturing output is down just 0.2% over the past year.

Ad Loading...

In October, mining posted a gain of 2.1% for its largest increase since March 2014, but the measure for utilities dropped 2.6% as warmer-than-normal temperatures reduced the demand for heating.

This overall measure of output from the nation’s factories, mines and utilities fell short of a consensus estimate of Wall Street analysts who predicted a 0.2% gain for October. The Fed revised down September’s performance for a 0.2% drop, but August was revised upward for a 0.5% improvement.

At 104.3% of its 2012 average, total industrial production in October was 0.9% lower than its year-earlier level. Capacity utilization for the industrial sector edged down 0.1 percentage point in October to 75.3%, a rate that is 4.7 percentage points below its 1972–2015 average.

In the wake of this report, The Wall Street Journal said industrial production appears to have stabilized in recent months following two years of pressure from a strong dollar, which dampened demand for U.S. exports, and low oil prices that squeezed the domestic energy industry.

Also, a report issued earlier this month showed the nation’s manufacturing sector continues improving. The Institute for Supply Management’s October Purchasing Managers’ Index increased 0.4 of a percentage point from September. It registered 51.9% for a second straight monthly increase. 

Ad Loading...

Homebuilders Remain Confident

A separate report about the U.S. housing market, also released Wednesday, indicated builder confidence in the market for newly-built single-family homes held steady in November.

The National Association of Home Builders/Wells Fargo Housing Market Index registered 63, matching Wall Street expectations, and is down only slightly from around a 10-year high of 65 hit in September. A reading over 50 indicates more builders believe conditions are good rather than bad.

“Ongoing job creation, rising incomes and attractive mortgage rates are supporting demand in the single-family housing sector. This will help keep housing on a steady, upward glide path in the months ahead,” said NAHB Chief Economist Robert Dietz.

This follows earlier reports that showed new home construction and the number of permits issued increased in September. Figures for October are due out later this week.

Overall Wholesale Prices Down But Goods Increase

Lastly of note, a measure of prices at the wholesale level shows they were unchanged in October, as the increased costs of goods was offset by lower service prices.

Ad Loading...

The Labor Department report on the Producer Price Index for last month follows one for September that showed a 0.3% increase from the month before. This latest performance was lower than a consensus estimate from analysts who forecasted a 0.3% rise in the PPI.

The measure increased 0.8% in October compared to the same time a year earlier, the largest 12-month rise since advancing 0.9% in December 2014.

Producer prices for goods increased 0.4% in October compared to September, the second straight monthly gain. According to MarketWatch, higher costs of natural gas and gasoline were offset by declines in prices of food as well as services such as financial advice and hospital outpatient care. Prices for services fell 0.3% in October from the month before.

The weaker-than-expected inflation report offers a healthy dose of current economic reality, said Lindsey Piegza, chief economist at Stifel Fixed Income.  

“Despite expectations of ‘Trumponomics’ becoming re-flationary in the future, the current reality of sluggish growth and lackluster prices hasn’t changed,” she said. “The Fed could easily jump on the market’s bandwagon of better times ahead. After all they have been toting that line for years, but we know what happens when the Fed adjusts policy based on anticipation of further improvement. Just look back to the December 2015 [interest rate] liftoff which was made against the backdrop of a moderate economy in hopes of improvement throughout 2016, which has thus far failed to materialize.”

Ad Loading...

Piegza said while some people are optimistic “that Trump policy will usher in pro-growth policies” including a rollback of taxes and regulations, “these policies will be slow to be enacted and the results of which will be slower still.”

Earlier the Fed indicated it wanted to see inflation around a 2% annual pace, however, the Open Market Committee has since moderated its stance on this issue as a pre-condition for increasing interest rates. Regardless, MarketWatch said the October report shows inflationary pressures are building, which is fueling belief that a small hike in interest rates will be announced by the Fed next month.

More Fleet Management

Illustration with stacks of money and a shattered car windshield
Fleet Managementby Deborah LockridgeApril 13, 2026

Bill in House Would Raise Minimum Insurance for Motor Carriers to $5 Million

The Fair Compensation for Truck Crash Victims Act would increase insurance requirements for interstate motor carriers by nearly seven times.

Read More →
FTR market report for February 2026.
Fleet Managementby News/Media ReleaseApril 10, 2026

FTR Trucking Conditions Index Hits Four-Year High in February

Strong freight rates push TCI to 10.2, but FTR expects fuel-price volatility to skew March results.

Read More →
C.H. Robinson intermodal.

C.H. Robinson Offers Carriers Relief as Diesel Prices Surge

C.H. Robinson is waiving fees on fuel cards and cash advances for April and May, aiming to help carriers offset rising diesel costs tied to geopolitical instability.

Read More →
Ad Loading...
Fleet Managementby StaffApril 8, 2026

What Trucking Events are Happening in 2026?

Looking for trucking-related conventions, expos, and other events? Heavy Duty Trucking has developed this list of national and larger regional trucking shows and events.

Read More →
Peter Voorhoeve, president, Volvo Trucks North America.
Fleet Managementby Jack RobertsApril 6, 2026

Volvo’s Quiet Confidence Turns into a Full-Throated Bet on the Future

After years of steady, methodical progress, Peter Voorhoeve says the OEM’s latest lineup isn’t just evolutionary. It’s delivering real, measurable gains for fleets right now.

Read More →
Beyond Trucks Rate Agent TMS.
Fleet Managementby Jack RobertsApril 2, 2026

BeyondTrucks Targets Rate Complexity with New AI RateAgents

BeyondTrucks says its new RateAgents can turn plain-language rate logic into working code, starting with fuel surcharges — a critical but notoriously complex piece of carrier revenue.

Read More →
Ad Loading...
Magnus Koeck, vice president of strategy, marketing, and brand management, Volvo Trucks North America
Fleet Managementby Jack RobertsApril 2, 2026

Volvo Sees Market ‘Tipping Point’ as New VNL Orders Surge

Soft freight conditions persist, but aging fleets, strong order intake, and new-product momentum signal a more optimistic second half of 2026, Volvo Trucks North America says.

Read More →
Illustration of a semi-trailer with a sports playbook diagram on chalkboard
Fleet Managementby Deborah LockridgeApril 1, 2026

Cargo Theft’s New Playbook: Strategic Fraud, Double Brokering, and Cybercrime Hit Trucking

Cargo theft is evolving from regional smash-and-grab operations to sophisticated fraud schemes. Strategic theft now accounts for roughly a third of cargo crime, with incidents rising sharply in recent years. Here’s how the schemes work — and what fleets can do to protect themselves.

Read More →
Collage of Top 20 Product award ceremonies
EquipmentMarch 31, 2026

HDT Honors the Best New Products of 2025 at TMC [Photos]

Heavy Duty Trucking's Top 20 Products awards recognize the best new products and technologies. Check out the award presentations at the 2026 Technology & Maintenance Council annual meeting.

Read More →
Ad Loading...
freightliner whitepaper
SponsoredMarch 31, 2026

Detroit Engines: Trusted Performance, Built for What's Next

The Detroit® Gen 6 engine platform proves that real progress doesn’t require a complete redesign. Built on 20 years of trusted technology, these engines are designed for efficiency, stronger performance, and greater reliability than before. And they do it all while complying with 2027 EPA standards on every mile.

Read More →