The American Trucking Association is reporting a slight decline in total trucking volumes for the month April. The Tonnaage Index declined 0.7% versus March. The year over year data is still showing a healthy gain at 4.8% though down from the prior month’s reading of 6.5%. Looking ahead, Bob Costello, the ATA’s Chief Economist is still feeling confident about the economy (via ATA):
“The drop in April is not a concern. Since freight volumes are so volatile truck tonnage is unlikely to grow every month, even on a seasonally adjusted basis,” ATA Chief Economist Bob Costello said. “I expect economic activity, and with it truck freight levels to grow at a moderate pace in the coming months and quarters.”
“The industry, and the economy at large, should benefit from the recent declines in oil and diesel prices,” Costello added. “Lower fuel costs will help freight volumes and motor carrier bottom lines going forward.”
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.