The Trucker Newspaper - April 15, 2018

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b Tonnage from page 23 b
Business April 15-30, 2018 • 29
ment, equaled 99.7 in February, which was 6.7
percent below the previous month of 106.8.
“Despite a softer February than January,
freight remains robust as exhibited in the yearover-year
increase,” said ATA Chief Economist
Bob Costello. “The drivers of truck freight —
personal consumption, factory output and construction
— are good, plus the inventory cycle
is in favor of motor carriers, so I expect freight
tonnage to grow at a decent pace in the months
ahead.”
Meanwhile, spending on U.S. construction
projects ticked up a mere 0.1 percent in February
from the prior month, a sign that a growing
economy is doing little to spur a more rapid pace
for building homes, hospitals and highways.
Construction materials are among the commodities
hauled the most by truckers.
The U.S. Department of Commerce said
that construction spending came in at a seasonally
adjusted annual rate of $1.27 trillion.
The lower unemployment rate and solid
business and consumer confidence has supported
an increase in hotel and office construction,
but spending on roadways has slipped.
Construction spending over the past 12
months is up just 3 percent before adjusting for
inflation. Some of the sluggishness in February
was because of a 2.1 percent drop in government-funded
construction.
But even the private sector has yet to fully
perk up despite the 4.1 percent unemployment
rate. Residential construction, the largest single
spending category, rose just 0.1 percent in February.
Homebuilders face strong demand from
would-be buyers, yet there is a shortage of attractive
land to develop and a dearth of construction
workers.
Spending on factory construction did jump
1.2 percent between February and January. But
the gains came after months of steady annual
declines. Over the past 12 months, spending on
manufacturing plants has dropped 5.6 percent.
In another development impacting trucking,
Americans increased their spending just
0.2 percent in February, while their incomes
were boosted by increased wages and business
owners’ income.
The Commerce Department said the modest
spending increase followed an equal gain
in January and a rise of 0.4 percent in December.
Incomes increased a healthy 0.4 percent.
The report came as a new indication
emerged of a healthy job market. The number
of Americans filing claims for jobless benefits
dropped by 12,000 last month to 215,000 —
the lowest level in 45 years. It’s a sign that
employers anticipate solid growth and want to
hold onto their workers.
A closely watched signpost, consumer
spending accounts for about 70 percent of
U.S. economic activity.
After-tax income jumped 0.4 percent. With
consumers holding back on spending, the savings
rate rose to 3.4 percent — the highest
since last August. The rate was 3.2 percent in
January. Savings had fallen to a 12-year low
in December.
The healthy income gains could spur more
spending in the coming months.
The government has revised upward to 2.9
percent its estimate of the rate of growth in gross
domestic product for the fourth quarter. That
capped a nine-month stretch in which the economy
grew at the fastest pace in 12 years. 8
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