GE Capital said in its Spring 2015 Industry Update on Truck Transportation GDP growth slowed to 2.2% on an annualized basis during Q4/14; down sharply from the torrid 5% growth during Q4/14 and lower than full year growth of 2.4%.

Retail and new construction related freight were suppressed by particularly harsh weather compounded by the additional challenges of a logjam at West Coast ports and uneven employment trends. Nonetheless, freight trends in retail and construction should show gradual improvement with better weather, resolution of the port issues and expectations of a modest acceleration in GDP growth through the remainder of 2015, according to the report.

Highlights from the report include:

• The outlook however is not without potential challenges, particularly the likelihood of rising interest rates, which could keep tonnage associated with general economic activity and residential construction activity in particular, from reaching full potential.
• The March ATA advanced seasonally adjusted For-Hire Truck Tonnage Index improved 1.1% from a trough in February and was 5.0% higher than a year earlier.
• Following a trough in January, the FTR Truck Tonnage Index in March showed continued sequential improvement while increasing 0.3% from February and 3.6% from a year earlier.

To view the full GE Capital report, click here.