NAFTA Economic Growth Continues to Slow
The sharp slowdown in economic growth in the U.S. is beginning to depress economic growth in Canada and, to a lesser extent, in Mexico
The sharp slowdown in economic growth in the U.S. is beginning to depress economic growth in Canada and, to a lesser extent, in Mexico.
The slower growth in Canada and Mexico will be concentrated in the manufacturing centers exporting to the U.S. market: the Great Lakes region in Canada and the U.S. border regions in Mexico.
As a result, economic growth in the NAFTA region is expected to decline from 5.3 percent in 200 to 3.1 percent in 2001. A recovery to 3.5 percent is anticipated in 2002. Both the Canadian and Mexican economies are slowing, mostly due to slower growth in exports to the United States. Neither country has the cost pressures or surplus inventories that are restraining U.S. economic growth.
The current transition from overheated to average economic growth is probably overshooting on the low side. The economic news has been grim this winter. Production is less than consumption as excess inventories - both consumer and business goods - are being absorbed. This means less inbound freight to factories and distribution points.
By summer, inventories will be back to an acceptable level, so production will rise to match the 3 percent to 4 percent growth pace in consumer and business spending. While disappointing after a long economic boom, that is the sustainable long-term growth rate.
From "Newport's Trucking Outlook" newsletter.
More Fleet Management

Volvo Trucks Adds Unattended Over-the-Air Software Update Capabilities
The latest evolution of Volvo’s over-the-air update technology allows software updates to run while trucks are parked, helping fleets keep vehicles current without disrupting operations.
Read More →How Waste Connections is Using Data, Telematics, and AI
How do you manage and maintain more than 18,000 connected trucks? Data. Lots of it.
Read More →
Why Fleet Data Matters More Than Ever at Waste Connections [Watch]
Waste Connections' Chuck Palmer explains how telematics, predictive maintenance, safety analytics, and AI help keep vehicles on the road and drivers safe in this episode of HDT Talks Trucking.
Read More →
NMFTA Launches Free, Anonymous Cybersecurity Threat Report Portal
Organizations are encouraged to anonymously report freight fraud, cargo crime, and cyber threats while gaining visibility into incidents reported across the transportation sector.
Read More →
AI Can Optimize a Fleet. Can It Replace Human Judgment?
Fleets fear falling behind if they don’t adopt AI quickly enough. They also fear what happens if the technology makes the wrong decision.
Read More →
Jamie Hagen Gets Real About Running a Small Fleet in an Uncertain Economy
Small fleet owner Jamie Hagen says new legal risks, volatile fuel prices, and a changing freight market are forcing small carriers to rethink how they operate — and what they can afford.
Read More →Jamie Hagen Gets Real About Freight, Fuel Prices, Safety, and Small-Fleet Survival
Running a small trucking fleet right now isn’t easy, especially right now. And Jamie Hagen doesn’t sugarcoat it.
Read More →Jamie Hagen Gets Real About Freight, Fuel Prices, Safety, and Small-Fleet Survival
Running a small trucking fleet right now isn’t easy, especially right now. And Jamie Hagen doesn’t sugarcoat it.
Read More →
Data Lock‑In or Integration Lock‑Out?
Data fragmentation is costing dealerships, OEMs, fleets, and upfitters millions. Here’s why interoperability may be the fix the trucking industry needs.
Read More →What Trucking Fleets and Brokers Need to Know About This Supreme Court Case
In May, the U.S. Supreme Court ruled that freight brokers can be held liable for damages if a truck they have contracted with is involved in an accident. Listen as this transportation attorney breaks down the ruling and its implications for the trucking industry.
Read More →
