Here’s another early warning signal of possible recession: Fewer goods are being shipped across the country.
Truck, rail and air freight volumes fell 5.3% in June from the same period a year ago, the seventh straight annual decline, according to the closely watched Cass Freight Index. That followed a 6% drop in May.
The persistent drops could portend trouble for the economy because shipments reflect demand for a wide range of consumer and industrial goods.
“There is growing evidence from freight flows that the economy is beginning to contract,” Donald Broughton, managing partner of Broughton Capital and author of the Cass report, wrote in the latest edition last week.