ATA: Truck tonnage index steady in October

The seasonally adjusted For-Hire Truck Tonnage Index equaled 131.6 for the month, down 0.3 percent from September and 0.9 percent compared with October 2015, the second year-over-year decline of 2016, according to American Trucking Associations.    Domestic truck tonnage in October 2016 was relatively steady compared with the previous month, falling just 0.3 percent following a revised decrease of 6.3 percent in September, according to the American Trucking Associations’ (ATA) advanced seasonally adjusted For-Hire Truck Tonnage Index.
   The seasonally adjusted index equaled 131.6 for the month, down 0.9 percent compared with October 2015, the second consecutive year-over-year decline and the second of 2016, after the index slipped 1.3 percent in September. ATA noted the all-time high index reading was 144 in February 2016.
   Through the first ten months of the year, tonnage increased 2.5 percent compared with the same 2015 period.
   The not seasonally adjusted index, which represents the change in tonnage hauled by fleets prior to any seasonal adjustment, equaled 138.2 in October, up 1.9 percent from 135.6 the previous month.
   “While seasonally adjusted tonnage fell, meaning the not seasonally adjusted gain wasn’t as large as expected, the bottom of the current tonnage cycle should be near,” ATA Chief Economist Bob Costello said in a statement. “There are some recent trends that suggest truck freight should improve, albeit gradually, soon.
   “Retail sales, housing starts, and even factory output all improved in October, which is a good sign,” he added. “Most importantly, there has been considerable progress made in clearing out excess stocks throughout the supply chain. While that correction is still ongoing, there has been enough improvement that the negative drag on tonnage shouldn’t be as large going forward.”