ISM Manufacturing Index Improves in September

U.S. manufacturing activity rose in September from to a three-year low, showing expansion for the month, the Institute for Supply Management said Monday.

ISM’s monthly manufacturing index reading rose to a reading of 51.5, from 49.6 in August, the group said.

Figures lower than 50 indicate contraction, while figures higher than 50 show expansion.

Economists had forecast the index would rise to a reading of 49.7, Bloomberg reported.

Eleven of 18 manufacturing industries showed expansion, and the new orders index jumped 5.2 points to a 52.3 reading.

The employment index rose 3.1 points to 54.7, while production gained 2.3 points to 49.5, ISM said.

ISM’s factory index measures manufacturing components of the economy.

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Class 8 net orders remain weak in September

NASHVILLE, Ind. -- The Class 8 market remained soft in September, with preliminary net order numbers reported by FTR Associates coming in at the lower end of expectations.

FTR reported preliminary Class 8 truck net orders at 15,205 units, down slightly from August. September orders were 35% below last September, and concluded the weakest quarter since Q3 2010.

The annualized rate for net orders placed in the third quarter is just 174,400 units, FTR reported.

“September orders were at the low end of our expectations so they were somewhat disappointing,” said Eric Starks, FTR president. “We wouldn’t have been surprised to see three to four thousand more units ordered in the month, but the reported numbers were certainly within the range we expected to see, albeit softer than we would have liked. Even with sluggish freight levels, we still expect to see a seasonal bounce in orders during Q4, but likely not at levels that many in the industry are hoping to see.”

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ISM Services Index Improves in September

An index of the U.S. economy’s service sector improved in September, the Institute for Supply Management said Wednesday.

ISM’s monthly services index rose to a reading of 55.1, from 53.7 in August. Figures greater than 50 indicate expansion.

Economists had predicted the index would drop to 53.4, Bloomberg reported.

The index averaged 56.1 in the five years prior to the recession that began with December 2007.

ISM’s services index measures nonmanufacturing components of the economy and the services sector — which includes transportation, retail sales and financial services and accounts for nearly two-thirds of the U.S. gross domestic product.

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Volvo Exec Leaving Truck Division; Company Launching European Truck in September

Ron Huibers, Volvo Trucks’ president of sales and marketing in North America, is leaving the truck-making unit to become president of Volvo Penta Americas, which makes boat engines.

A replacement for Huibers at Volvo Trucks is expected to be named during the fall, a company spokesman said. Huibers became president of sales and marketing on Jan. 1.

Separately, Volvo said it will launch new versions of its Volvo FH and Volvo FH16 heavy-duty trucks in Europe on Sept. 5. The truck will use a new independent front suspension system.

Volvo Trucks spokesman Brandon Borgna said the new suspension system will not be available on trucks sold in North America.

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N.A. surface transportation soars 13.8% in September

WASHINGTON, D.C. -- Trade using surface transportation between Canada, the US and Mexico was 13.8% higher in September than in September 2010, totalling $77.7 billion, according to the Bureau of Transportation Statistics (BTS) of the US Department of Transportation.

BTS reported that the value of US surface transportation trade with Canada and Mexico in September rose 35.7% in two years from September 2009 and 83.0% when compared to September 2001.

Imports in September were up 71.3% since September 2001, while exports were up 99.0%.

In September, 85.6% of US trade by value with Canada and Mexico moved via land, 9.8% moved by vessel, and 4.5% moved by air.

The value of US surface transportation trade with Canada and Mexico decreased 3.3% in September from August.

US-Canada surface transportation trade increased compared to September 2010 reaching $46.1 billion, a 14.7% increase.

In September trade by state, Michigan led all states in surface trade with Canada as it has in previous years, at $6.0 billion, a 9.6% increase from September 2010.

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Ground transportation costs remain constant, base rates fall in September

TORONTO, Ont. -- The cost of ground transportation for Canadian shippers in September remained the same month-over-month, according to the latest figures from the Canadian General Freight Index (CGFI).

However, the Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, decreased by .1% for the same period. It was the first decrease in base rates since March.   

Offsetting the decrease in base rates were slight increases in both average fuel surcharges assessed by carriers and other accessorial charges. During this period, fuel surcharges assessed by carriers equated to 20.16% of base rates, up from 20.1% in August. The combined effect of lower base rates and higher accessorial charges resulted in no change in average transportation costs for Canadian shippers, according to the report.   

"The slight decrease in Base Rates was predominantly driven by reduced costs in the transborder truckload sector," said Doug Payne, president and COO of Nulogx. "Over the summer, these movements were subject to significant cost increases and it is possible that these are easing somewhat."

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Truckstop News, September 2011 issue

andystewart | Digital Editions, Truckstop News | 23/08/2011 10:11am
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Welcome to the FREE September 2011 issue of Truckstop News. All pages of the paper are available to download right here. To view a page, simply click one of the images below. You can then use your keyboard’s cursor keys or click the arrows to flick through the pages.

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This entry was posted on Tuesday, August 23rd, 2011 at 10:11 am and is filed under Digital Editions, Truckstop News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a comment, or trackback from your own site.

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Wholesale Inventories Dip 0.1% in September

Wholesale inventories dipped 0.1% in September, the first decline since 2009, the Commerce Department said Wednesday.

The inventories decrease which followed a revised 0.1% increase in August that was lower than originally estimated.

The September decrease was below economists’ median forecast of a 0.5% gain, Bloomberg reported.

Wholesale sales rose 0.5%, Commerce said.

Durable goods stockpiles climbed 0.4%, led by automobiles, machinery and lumber, Bloomberg said.

Wholesale inventories account for about a fourth of total business stockpiles, while retailers and factories account for the rest.

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Factory Orders Rise 0.3% in September

Factory orders rose 0.3% in September, the Commerce Department said Thursday.

The increase followed a revised 0.1% gain in August that was originally reported as a 0.2% drop.

The September gain topped economists’ forecasts of a 0.2% decrease, Bloomberg reported.

Capital goods orders excluding aircraft and military orders, a measure of future business investment, jumped 2.9% following a 0.9% gain the previous month.

The trucking industry relies on factory orders and shipments for much of its business.

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Used truck volumes recover in September: ACT report

COLUMBUS, Ind. -- Reported volumes of used Classes 3-8 truck sales recovered in September after an extended summer slump, according to a report published by ACT Research. Volumes were mixed on a channel-by-channel basis, falling in the retail market, but gaining ground in the auction and wholesale markets, according to the report.

"The majority of this month's sequential improvement can be attributed to a very solid month in the auction segment," said Steve Tam, vice-president, commercial vehicle sector with ACT. "The average selling price for total used Classes 3-8 fell month over month. Average age continues to be the most consistent, least volatile of all the metrics measured. Both age and mileage numbers are expected to increase throughout 2011."

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Personal Spending Rises 0.6% in September

Consumer personal spending climbed 0.6% in September, the Commerce Department said Friday.

The increase followed a 0.2% gain in August.

The September gain matched economists’ forecasts, Bloomberg reported.

Personal incomes edged up 0.1% after declining 0.1% the previous month.

A rise in consumer spending could increase demand for new factory goods and the trucking shipments that get them to stores.

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New Home Sales Rise 5.7% in September

New home sales increased in September after falling to a six-month low in August, the Commerce Department said Wednesday.

Sales rose 5.7% to an annual rate of 313,000, above economists’ forecasts of a 300,000 rate, Bloomberg reported.

The median price fell to $204,400, from $228,000 a year ago.

Sales increased 11% in the South and 9.7% in the West, but dropped 12% in the Midwest and 4.2% in the Northeast.

New home sales account for about 15% of residential real estate sales. Rising home sales can mean more business for flatbed trucking companies that haul building materials and dry van freight carriers that haul household appliances and furniture.

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US truck tonnage rises 1.6% in September: ATA report

ARLINGTON, Va. - US truck tonnage rose 1.6% in September after falling a revised 0.5% in August, according to the most recent figures from the American Trucking Associations. August's decrease was more than the 0.2% drop the ATA previously reported. 

Compared with September 2010, seasonally-adjusted tonnage was up a "solid" 5.9% in September and 4.9% year-over-year in August.

"I continue to believe the economy will skirt another recession because truck tonnage isn't showing signs that we are in a recession," said ATA chief economist Bob Costello said. "Tonnage is suggesting that we are in a weak growth period for the economy, but not a recession."

Costello also noted that the third quarter average exhibited signs of small gains for the broader economy, not contraction. "In the third quarter, tonnage was up 0.4% from the second quarter. Prior to the two previous recessions truck tonnage was plummeting, but not this time."

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Commercial trailer net orders improved in September

COLUMBUS, Ind. -- After recent lackluster performance, trailer order activity posted solid improvement in September, according to ACT Research Co. Net orders were up almost 31% month-over-month and 22% year-over-year. Supported by solid production and inventory reduction, total trailer factory shipments were up nearly 65% year-over-year in September.

"Production is still outpacing new order intake, despite the improvement in orders in September," said Frank Maly, director CV transportation analysis and research with ACT. "This is reducing the backlog. However, we cannot divorce ourselves from seasonality: orders are always weak and backlogs always fall through the third quarter. On a seasonally adjusted basis, total trailer backlogs have been virtually unchanged since May."

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Leading Economic Indicators Rise in September

An index of leading economic indicators continued to rise in September, the New York-based Conference Board said Thursday.

The index climbed 0.2% after a 0.3% gain last month.

The gain, which was the smallest since a decrease in April, matched economists’ forecasts, Bloomberg reported.

The LEI is closely watched by trucking companies because it forecasts business activity for the next three to six months.

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Existing Home Sales Decline in September

Existing home sales slipped 3% in September, the National Association of Realtors said Thursday.

The decrease to an annual rate of 4.91 million homes matched economists’ forecasts, Bloomberg reported.

The median price of existing homes fell 3.5% from a year ago, to $165,400.

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September Housing Starts Climb 15%

Housing starts jumped 15% in September to the highest level since April 2010, the Commerce Department said Wednesday.

Starts climbed to a rate of 658,000 units, from a revised rate of 572,000 in August.

The rate surpassed economists’ forecasts of a 590,000 rate, Bloomberg reported.

Building permits, an indicator of future construction, declined 5% to 594,000, a five-month low, Bloomberg said.

Single-family home starts, which account for about 85% of the total, gained 1.7% to a 425,000 rate.

Work on multifamily units, which is often more volatile, jumped 51.3% to a 233,000 annual rate.

Starts rose in all four national regions, led by an 18.1% increase in the West and a 15.7% gain in the South, Bloomberg reported.

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Producer Prices Increase in September

Prices paid to U.S. producers rose 0.8% in September, the largest gain in five months, the Labor Department said Tuesday.

The increase in the producer price index — which measures prices paid to factories, farmers and other producers — followed an unchanged index in August.

The core PPI, which excludes food and energy, rose 0.2%.

Economists had predicted a 0.2% increase in the PPI and a 0.1% gain in the core PPI, Bloomberg reported.

An increase in the PPI could indicate strong demand for goods, which would mean more shipments for trucking companies. However, if inflation begins to accelerate too quickly, it could also hurt the economy.

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Truckstop News, September 2011 issue

andystewart | Digital Editions, Truckstop News | 23/08/2011 10:11am
No Comments

Welcome to the FREE September 2011 issue of Truckstop News. All pages of the paper are available to download right here. To view a page, simply click one of the images below. You can then use your keyboard’s cursor keys or click the arrows to flick through the pages.

(Please note the page must load completely before you click on an image, otherwise the viewer may not load correctly.)

This entry was posted on Tuesday, August 23rd, 2011 at 10:11 am and is filed under Digital Editions, Truckstop News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a comment, or trackback from your own site.

Tags: 2011, 288, september, Truckstop News

View the original article here