What’s the Freight Transportation Services Index telling you

 

Freight Transportation Services Index

 

 

What is the Freight Transportation Services Index?

The Freight Transportation Services Index is the measure of annual output for the U.S. transportation sector by the Department of Transportation’s Bureau of Transportation Statistics. The data in this index is composed of ton-miles generated by for-hiring trucking, railroad, inland waterway, pipeline, and airfreight carriers. International and coastal steamship movements, private trucking, courier services, and the U.S. Postal Service are not included in this index.

 

Why is the Freight Transportation Services Index?

The Freight Transportation Services Index is both influenced by and an indicator of the state of the economy because it measures freight volume throughout the United States. This index is boosted and shows growth within the economy as consumer spending, trade, and industrial activity increase. When these things slow, it can signal contraction in the economy. Freight volumes for retailers and manufacturers can also make this index a valuable tool as a leading economic indicator.

 

What should you do?

Understanding the Freight Transportation Services Index can provide greater clarity into how the economy is impacting freight trends and highlight where the health of the economy stands. Majestic’s CORE Report follows the Freight Transportation Services Index; along with other indicators every week to see where the market stands.

Source: IBISWorld.com