BLOOMINGTON, IN – A measure of the U.S. trucking industry has been steadily rising over the past three months and is expected to remain in the current range through the end of the year.
That’s according to the Trucking Business Conditions Index for August, just released from the freight forecasting firm FTR. It registered 9.53, reflecting healthy freight growth conditions.
Positive revisions to first and second economic data have improved FTR’s freight growth forecast to 4.4% for all of 2015 and is expected to be followed by upward momentum in 2016 as new regulations eat away at trucking capacity.
“While the TCI has moved higher, we are hearing from shippers that the current capacity situation has been better than anticipated as we move through the peak shipping season,” said Eric Starks, president at FTR. “Even with capacity utilization easing some, truckers are still able to make money.”
He said this is translating into healthy demand for equipment as orders for trailers have remained strong.
The strong TCI is in contrast to some economic indicators that suggest the economy is stagnant, according to FTR.
“Even with the economy painting a mixed picture, trucking conditions are still expected to remain at levels that are healthy through the end of this year,” said Starks.
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