The Volume Index dropped further into negative territory, falling to 43.2 (SA) in June, from 46.7 in May. The June Pricing Index, at 43.8 (SA), recovered a good bit of last month’s sharp decline, up from 38.8 in May on a seasonally adjusted basis, the lowest in survey history.
Tim Denoyer, ACT Research vice president and senior analyst, commented, “Volumes and utilization have been down seven of eight months, and the supply-demand balance has been loosening for eight straight months. In line with several Q2 earnings warnings from truckload carriers this week, this is further confirmation of a weak freight environment. May’s Pricing Index looked a little anomalously bad, so it was good to see that pick back up, though still not a great level in June.”
Regarding the Volume Index, Denoyer said, “Volumes reached a new cycle low in June, likely due in part to rapid growth of private fleets, the slowdown in the industrial sector and some inventory drawdown. This coincides with most other freight metrics.”
He added, “The supply-demand balance reading loosened to 41.4, from 42.1 in May. The past eight consecutive readings have shown a deterioration in the supply-demand balance, with June the largest yet.”
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