The stimulus is providing a huge boost to Americans, who by and large, still remain unable to spend on big-ticket services like concerts, sporting events or amusement parks. The recent stimulus has created the strongest spending gains in furniture, online electronics and clothing.
We may be seeing signs of a traditional January lull, but at a much higher level than years past. On a rejection-adjusted basis, tender volumes are running up 23% yoy versus 20% last week. Tender rejections continue to decline modestly, but carriers are still rejecting more than 1-in-5 contracted tenders. Stimulus can only carry the freight markets so long. Fortunately, the industrial economy is revving up and retailers have significant restocking ahead.
Despite losing momentum sequentially for the last three months of the year, holiday sales grew 8.3% year-over-year. The surprising data is further evidence of the resilience of the American consumer, and the ability for retailers to influence how and when people shop.
Consumer spending on goods drove the majority of the freight boom in 2020. Will this trend last in 2021?
The Outbound Tender Reject Index has declined substantially since the beginning of the year. This shouldn’t be seen as a sign of a material capacity loosening, rather an effect of the ongoing rebid season pushing contract rates higher.
COVID induced demand for goods and spending in the home. How will spending behavior change when vaccines are widespread? Retail Analyst Andrew Cox believes consumer spending will be “A Tale of Two Halves”. See what he means:
Demand is reducing inventories while sales remain strong, leaving no cushion before sales ramp up as they do in November and December.
The U.S. is experiencing an import surge.
Anthony and Zach discuss the booming freight market and reasons why it will or will not sustain into July as well as the implications for the new insurance bill and YRC bailout.
Chart of the Week: Outbound Tender Volume Index– USA SONAR: OTVI.USA After experiencing one of the most volatile periods in history over the past two months, freight market volumes have recovered to February levels in the past week. February is not a great month for freight traditionally speaking but considering a month ago volumes were running 15-20% […]
Anthony and Zach discuss the recent Celadon shutdown and how it lines up with current freight market conditions; a disappointing manufacturing sector; consumers appear to be on another spending spree funded by debt.
Saudi Arabia angry at low oil prices; consumer spend set to increase during holiday season; European wine production battles climate change.
Retail remains a rare source of strength in the economy while manufacturing struggles
GDP growth slowed to a 2.1 percent pace in the second quarter, as strengthening consumer spending was offset by weakness elsewhere
Today on FreightWaves NOW, we give you quick hitters on volumes, the headhaul index, and a look at the latest consumer spending. Something here for carriers, brokers, and shippers.
In this commentary article, Donald Broughton looks at the second part of the economy – the consumer economy – and where we are now in the economic cycle.
Growth in the U.S. economy improved 3.2 percent during the first quarter, but details related to freight demand suggest a weaker environment to start the year.
