U.S. cargo shipments down 5.9% in July
Topics: U.S. CARGO SHIPMENT
Cass reported U.S. freight shipments dropped 5.9% from July 2018.
In its Freight Shipments Index report, Cass acknowledged the previous contractions could be excused as comparisons with a great year, 2018.
But now, after eight months of freight contractions, the research firm believes a nationwide slowdown, one that would affect the entire economy, could take hold at the end of the year.
“With the 5.9% drop in July, following the 5.3% drop in June, and the 6.0% drop in May, we repeat our message from last two months: The shipments index has gone from ‘warning of a potential slowdown’ to ‘signaling an economic contraction,’ ” Cass reported in its Aug. 15 report.
And more ominously: “Although the initial Q2 [of] 2019 gross domestic product was positive, it was not as positive upon dissection, and we see a growing risk that GDP will go negative by year’s end.” ■