Freight Transportation Services Index rises 1.6% from June to July; 2nd straight month without decline

Today, the Department’s Bureau of Transportation Statistics released July's Freight Transportation Services Index; it's up 1.6% from June. 

Doesn't seem like much? Keep in mind that this is the first monthly rise since February and the largest increase since January 2008. And because the Freight TSI was level from May to June, this means 2 months in a row without a decline.

Freight shipping is increasing, and someone is buying that freight. Whether it's consumers buying goods or manufacturers buying parts or other companies buying supplies, we're talking about economic activity. The rise in the freight index for the first time since February is a sign that the economic recovery is beginning.

Between the American Recovery and Reinvestment Act, the CARS--cash for clunkers--program, and other actions the Obama Administration has taken, I am hopeful that the economy is starting to turn around.

However, despite this tangible sign of progress, we all know that we still have a long way to go.  At DOT, we will redouble our efforts to make sure that transportation projects continue to stimulate a reviving economy and that transportation infrastructure renewal facilitates a thriving 21st century economy.

I hope we can all greet this news as grounds for cautious optimism.

Comments

[Michael E. Bailey]

This is grounds to be optimistic. It shows that all the hard work to get the ARRA passed is paying off and that the public is benefitting. The recovery is starting to take hold. We can dare to hope that employment will begin to increase and with that increase will come more consumer spending and more money into state, county, and city treasuries. This is happening too late to stop the 100,000 hour fixed route bus service cut at OCTA that will happen on Sunday and result in near 100 drivers and mechanics being layed off; but, it may signal the start of something that can prevent the additional 300,000 hour service cut taking place by June next year. Best wishes, Michael E. Bailey.

[jewelry reviews]

The recovery is starting to take hold. We can dare to hope that employment will begin to increase and with that increase will come more consumer spending and more money into state, county, and city treasuries.