Truck Index Edges Higher

CHICAGO - Jul 23/13 - SNS -- The amount of cargo handled by trucks declined in June, but the seasonally adjusted tonnage index still inched up 0.1% to a record 125.9, according to the American Trucking Association.

Compared with June 2012, the index surged 5.9%, which is robust, although below May's 6.5% year-over-year gain. Year-to-date, compared with the same period in 2012, the tonnage index is up 4.7%.

The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 125.9 in June, which was 5% below the previous month (132.4).

"The fact that tonnage didn't fall back after the 2.1% surge in May is quite remarkable," ATA Chief Economist Bob Costello said. "While housing starts were down in June, tonnage was buoyed by other areas like auto production which was very strong in June and durable-goods output, which increased 0.5% during the month according to the Federal Reserve.

"Robust auto sales also helped push retail sales higher, helping tonnage in June.” he said, "The trend this year is heavy freight, like autos and energy production, is growing faster than lighter freight, which is pushing truck tonnage up."