Economic forecast remains foggy

Nov. 18, 2002
A variety of economic indicators continue to paint an uncertain picture for the trucking industry, for both the short and long term. U.S. retail sales, excluding automobiles, inched up 0.7% in October to $230 billion, according to Commerce Dept. figures, eclipsing the 0.2 to 0.4% increase predicted by economists. However, auto sales fell by 1.9% last month, meaning that total retail sales of $301.7
A variety of economic indicators continue to paint an uncertain picture for the trucking industry, for both the short and long term.

U.S. retail sales, excluding automobiles, inched up 0.7% in October to $230 billion, according to Commerce Dept. figures, eclipsing the 0.2 to 0.4% increase predicted by economists. However, auto sales fell by 1.9% last month, meaning that total retail sales of $301.7 billion in October were unchanged from September.

Consumer confidence may also be rattled. A recent survey of consumers in New York, New Jersey and Connecticut by consulting firm Deloitte & Touche cautions that holiday spending may be stuck in neutral. About 51% of the respondents said they are planning to spend the same amount on gifts as last year, 36% planning to spend less, and only 12% expecting to spend more.

Corporations are even more pessimistic in terms of business activity, according to a survey of 125 CEOs by the Business Roundtable.

About 60% of the companies surveyed said they expect more layoffs next year due to the continued weak economy and tight profit margins. Only 19% of those questioned said their companies plan to increase spending on business equipment next year, while 57% saying spending would be flat and 24% planning for a decline, which would indicate reduced freight demand from the business sector.

About the Author

Tim Parry

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!