div classBodysc17zpet90 cdBBJodivpLOS ANGELES Reuters – A closely watched transportation report on Thursday said “the prospect of freight recession is now considerable” as the spending shift from goods to services accelerates, inflation erodes disposable income and interest rates climb. p
pFreight transportation is viewed as a barometer for the U.S. economy because when goods purchases fall, trucks and trains carry less cargo and business activity slows.pdivdivdiv classBodysc17zpet90 cdBBJodiv
p“After a nearly twoyear cycle of surging freight volumes, the freight cycle has downshifted with a thud,” authors of the Cass Freight Index wrote in their April report.p
pU.S. freight volumes fell in April from March and the yearago period, according to the report produced by data company Cass Information Systems Inc that is closely followed by analysts and investors. p
pThe shipments component of the index fell 0.5 year over year in April, following a 0.6 yearonyear increase in March.p
pThe April shipments component dropped 2.6 from March, and was 0.9 below the normal seasonal pattern. p
p“With more difficult comparisons in the next few months as global supply chain disruptions are set to intensify, more softness is on the horizon,” the report said. p
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pp Reporting by Lisa Baertlein in Los Angeles Editing by Mark Porterp
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