Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Lower Construction, Manufacturing Numbers Not Cause For Alarm

Two key economic indicators, measuring manufacturing and construction spending, slowed in March and April

by Staff
May 1, 2002
2 min to read


Two key economic indicators, measuring manufacturing and construction spending, slowed in March and April.

The Institute for Supply Management, formerly known as the National Association of Purchasing Management, reported its index of manufacturing activity registered 53.9 in April, down from a revised 55.6 percent in March.
While a number above 50 indicates growth in the manufacturing sector, the rate of expansion is slower than the month before.
Norbert J. Ore, chairman of the Institute for Supply Management Manufacturing Business Survey Committee said, "Though the rate has slowed, a third consecutive month of growth in the manufacturing sector is certainly encouraging. The New Orders Index lost some momentum, but it is still strong enough to drive sector growth in the next several months.”
The April performance remained strong enough to be consistent with 4% or higher GDP growth in 2002, said Newport Communications Senior Economist Jim Haughey.
“Most of the decline was due to the orders index dropping from an extremely high 65.3 to 59.0," he said. "The two key sub-indexes for freight volume both rose slightly. Production was up to 58 from 57.8 and inventory purchases grew to 42.9 from 41.2,” he said.
ISM also reported new orders fell in April while production increased, but factories continued to shed jobs, continuing a more than 18-month trend.
Meantime, the U.S. Commerce Department reported construction spending fell 0.9% in March, due mainly to a large drop in public building which fell 5.6% while private building rose 0.7%
While the decline was the biggest since June 2001, here is no reason for concern, said Haughey.
“Public works is the most volatile sector of construction. Warm February weather clearly advanced some work scheduled for March ahead to February. And public construction typically lags at the onset of a business expansion. The declines in tax collections caused by the recession are finally restraining public spending,” he said.
Non-residential construction -- buildings such as factories, offices, and hotels and motels -- fell by 0.3% in March, down 19.5% from a year ago. Office construction is down more than 32% from a year ago.

More Fleet Management

Illustration with ATRI logo and square blocks spelling out "research"
Fleet Managementby Deborah LockridgeApril 20, 2026

'Beyond Compliance,' Regulations, Driver Coaching on ATRI’s 2026 Research List

The American Transportation Research Institute will examine driver coaching, regulatory impacts — including the "Beyond Compliance" concept —and weather disruptions that shape trucking operations.

Read More →
Brian Antonellis, senior vice president, fleet operations, Fleet Advantage.
Fleet Managementby Jack RobertsApril 17, 2026

HDT Q&A: Brian Antonellis on the Growing Need to Replace Old Trucks

Fleet Advantage's Brian Antonellis says it's time for fleets to get back to the fundamentals of good maintenance practices. And that includes replacing older, inefficient equipment.

Read More →
Illustration of computer and mobile screens with load matching software superimposed over photo of an oversize load
Fleet Managementby News/Media ReleaseApril 17, 2026

Truckstop.com Adding to Open Deck, Heavy Haul Offerings

Load matching for flatbed, lowbed, oversize and overweight loads can't be automated like basic van freight, but Truckstop.com is adding more high-tech tools to help.

Read More →
Ad Loading...
Trucker Path, Truckstop.com partnership expands.
Fleet Managementby News/Media ReleaseApril 14, 2026

Trucker Path, Truckstop.com Expand Load Access Partnership

An expanded Trucker Path and Truckstop.com integration brings more freight opportunities into the TruckLoads app while emphasizing security and network quality.

Read More →
DAT TVI March 2026.
Fleet Managementby News/Media ReleaseApril 14, 2026

Truckload Rates Hit Two-Year Highs as Diesel Costs Surge, DAT Says

Strong March freight demand combined with a spike in fuel costs pushed both spot and contract truckload rates to their highest levels in more than two years.

Read More →
Cloud computing concept background with human and robot hands concept
Fleet ManagementApril 14, 2026

The AI Conversation You Need to Have with Your TMS Provider

Everyone’s talking about AI — but is your transportation management system actually built for it?

Read More →
Ad Loading...
Sharp Transportation tractor-trailer
Fleet Managementby News/Media ReleaseApril 14, 2026

Kriska Buys Fellow Canadian Carrier Sharp Transportation Systems

Being part of KTG will allow Sharp to expand and improve its services.

Read More →
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 →
Ad Loading...
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 →