Drop In Freight Traffic Is Newest Recession Indicator

One other indicator that the American economy is struggling is a drop in retail freight traffic. The most recent bad news is the latest in a series of events that suggest a possible economic downturn.

One of the top companies in this sector is feeling the effects of the slump in truck cargo freight. A large decline in earnings and sales was recorded by J.B. Hunt Transport Services, whose trucks are common sights on U.S. roadways, in the first quarter of 2023.

The firm, which is the fourth-largest trucking company in the country, has stated that the current scenario is challenging.

J.B. Hunt President Shelley Simpson informed shareholders that the business was experiencing both “deflationary price pressure” and “inflationary cost pressures.”

But it’s not only J.B. Hunt who’s having trouble. Between February and March of 2023, there was a drop of almost 5% in truck tonnage. The decrease is the steepest in over a decade.

Lower transportation volumes may signal a recession in the American economy and lead to job losses in the trucking industry.

There were several conflicting reports about American consumers last week. Inflation fell, but the underlying rate of increase was still too high. Second, as inflation rises faster than average salaries, real wages are falling for most people.

Recent data points add to a growing body of worry about the economy’s future. Recession is more likely if interest rates rise due to the high rate of inflation and the loss of income for regular Americans after adjusting for inflation.

New oil and natural gas drilling on federal lands has been banned by the Biden administration, which may be a blow to an economy already feeling the effects of rising gasoline prices.

Former economic counselor to President Trump Stephen Moore has warned that the massive amount of regulations enacted by Biden and his team might suffocate the economy.

Several significant tax hikes were suggested by the Biden administration, which might have a devastating effect on the economy at this time.

The policies of the Biden administration and the aftereffects of the worldwide epidemic have put further stress on the American economy.