ACT Research is adjusting its economic forecasts slightly lower as the U.S. Federal Reserve continues to act on inflation concerns and spot rates decline.

“Inflation looks more stubborn and the [U.S.] Federal Reserve’s increasingly resolute rhetoric shows a willingness to do whatever is required to bring inflation to long-term targets of around 2%,” president and senior analyst Kenny Vieth said in a press release.

“Changes to economic expectations are even more impactful to the freight economy: ACT’s freight composite drops as rates sensitive economic sectors (durables, investment, housing) are disproportionally impacted.”

Spot rates continued to dip in September, averaging US$1.96 net fuel and down 3% from August, while the seasonally adjusted spot rate declined 4%.

“Anecdotes indicate that contract rate negotiations are running south of -10%,” Vieth added.