Transport sector to fall in 2007 on slow growth in goods

Transport sector to fall in 2007 on slow growth in goods Trucking is a leading indicator of economic productivity, and if the second half of 2006 is a reliable barometer, Americans should get ready for slower growth in 2007.
   The amount of freight hauled by motor carriers is down from 2 percent to 3 percent month-over-month and year-over-year, according to recent statistics from the American Trucking Associations.
   The trade association is forecasting U.S. gross domestic product will be 2.3 percent in 2007, with growth especially slow in the first half of the year before it recovers, Chief Economist Bob Costello said Tuesday in a conference call with reporters. The U.S. Chamber of Commerce last week predicted 2.4 percent growth for the entire year. By comparison, some estimate that 2006 will have finished the year averaging about 3.3 percent growth.
   Costello said the service sector will lead the economy with about 3 percent growth, putting growth in the tangible goods sector closer to 1.6 percent.
   Tangible goods are the merchandise and materials that fill up trucks and rail cars.
   'This remains one of the tougher environments since the last recession,' Costello said.