Producer Prices & Industrial Production Point To Strong Recovery
Prices at the wholesale level moved slightly higher in February, while industrial production increased more than expected
Prices at the wholesale level moved slightly higher in February, while industrial production increased more than expected,
pointing to signs a strong economic recovery is ahead.
The U.S. Labor Department reported the Producer Price Index increased 0.2% for the month, after a 0.1% gain in January. Excluding the volatile food and energy sectors, wholesale prices were unchanged during February, following a 0.1% drop the month before. The numbers also mean the index is 2.6% lower than where it was a year ago.
This low inflation of the PPI will likely allow the Federal Reserve Board to delay raising interest rates as the economic recovery builds momentum, says Newport Communications Senior Economist Jim Haughey.
“This means a quicker recovery than most expected at the beginning of the year. Credit continued high productivity for restraining inflation. Productivity increased at a 2.3% annual pace over the last three quarters of 2001 instead of falling as it typically does during a recession or severe economic slowdown,” he says.
Haughey says, “Eventually, the continuing recovery will spur sharp rises in energy and commodity prices and push PPI inflation to 2% or more. But that is more than a year away.”
Meantime on Friday the Federal Reserve reported industrial production in February posted its biggest increase since June 2000. Output at the nation’s factories, mines and utilities rose 0.4% for the month, following a revised 0.2% increase in January, the first back-to-back increases since August and September 2000.
The manufacturing sector, which is the most important to the trucking industry, accounted for the largest part of the increase, jumping 0.3%. Overall production capacity also moved up to 74.8%, up from a revised 74.5% in January and the highest since October 2001.
The industrial production numbers mark the first solid increase in more than a year, Haughey says.
“This is good evidence the recovery has started,” he says. “Inventories have fallen to the point where production has to increase to keep up with demand.”
For the trucking industry, Haughey predicts carriers hauling durable goods will be for the first to see a pickup in their business.
More Fleet Management

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 →
Truckload Rates Keep Rising as Tight Capacity Fuels Freight Market Recovery
Spot and contract rates continued climbing in May and June, not because freight demand is surging, but because fewer trucks and drivers are available.
Read More →
What Geotab's New AI Connector Means for Fleets
Fleets can now ask their usual AI assistants questions about maintenance, safety, fuel use, and vehicle performance, using their live Geotab data, and take action on the answers without leaving their preferred AI tool.
Read More →
New C.H. Robinson Tool Opens Door to More Predictable Freight
BidBoardX lets carriers search, bid on, and secure committed freight opportunities through a single digital marketplace.
Read More →
New York City's Microhub Project is Delivering Results
Trucking, last-mile delivery companies, and environmental advocates like what they are seeing so far with New York's microhub program.
Read More →
Why Truck Detention Keeps Costing Fleets Time and Money
A 2024 ATRI study found detention affects nearly 40% of truckload stops and costs the industry more than $15 billion annually. Despite the toll on drivers, fleets, and supply chains, the problem remains stubbornly persistent.
Read More →
Time is Running Out to Apply for Exclusive HDT Event
Heavy Duty Trucking Exchange brings fleet managers and suppliers together for the deeper conversations that lead to ideas, partnerships, and solutions. Time is running out to apply for the September event.
Read More →
Amazon Launches Less-Than-Truckload Freight Offering for All Businesses
This launch is the latest addition to Amazon Supply Chain Services, a portfolio of supply chain capabilities from Amazon, including freight, distribution, fulfillment, and parcel shipping.
Read More →
Import Cargo Volume to See Year-Over-Year Gain Again in June, Then Remain Below 2025 Levels Into Fall
After July, the report predicts a weakening in import volume as consumer uncertainty remains high and the impact of increasing inflation takes its toll.
Read More →
AUCTION OF EQUITY INTEREST IN HEAVY HAUL TRUCKING COMPANY!!
Mark your calendar: June 30, 2026 (10:00 a.m. PDT). A 37.5% ownership interest in MagnaTrans, LLC, a California limited liability company doing business as Magna Transportation Group, will be sold in an in-person and online auction to the highest bidder or bidders under Article 9 of the Uniform Commercial Code. The Rancho Cucamonga-based heavy haul and over-dimensional trucking company operates across California, Oregon, and Arizona.
Read More →

