Q3 U.S. Bank Freight Payment Index Stays Relatively Flat Versus Q2, Year-over-year Spend Data Sees Robust Rise
October 23 2019 - 10:00AM
Business Wire
The U.S. Bank Freight Payment Index, a quarterly analysis of
freight shipment volumes and spend by organizations shipping goods,
revealed fairly flat national shipment and spend indexes for the
third quarter of 2019 as compared to the prior quarter. Against an
economic backdrop which suggested both indexes might be down, the
data indicated shipments increasing, and spend slowing down,
slightly. Third quarter results are not consistent with some
predictions that an economic recession is around the bend.
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U.S. Bank Freight Payment Index - Q3 2019
(Graphic: U.S. Bank)
- Compared to a solid second quarter, the U.S. Bank National
Shipment and Spend Indexes were mostly flat during Q3.
- Retail sales accelerated from the second quarter, helping
support shipments from July through September.
- Regional data provide context for the growth and economic
factors affecting the industry.
- Midwest: with factory output contracting and
agricultural exports negatively impacted by trade war headwinds,
overall performance was the weakest of the five regions.
- Northeast: driven primarily by solid consumer spending
and new home construction, it’s the only region to post
year-to-date volume increases in all three quarters of 2019.
- Southeast: Hurricane Dorian helped spur the shipment
index up 3.9% as goods flowed in for recovery efforts, triggering
the first year-over-year increase in four quarters.
- Southwest: saw mixed results again, especially in
shipments; the spend index, while flat in Q3, remains at all-time
high levels.
- West: was one of just two regions to post sequential and
year-over-year gains in shipments, while a 4.6% spending jump in Q3
helped offset the combined 6.4% drop from Q1 and Q2.
"The third quarter U.S. Bank Freight Payment Index aligns with
much of the other data we’ve seen,” said Bob Costello, senior vice
president and chief economist for the American Trucking
Associations. “However, it was interesting to see the divergence of
freight types and freight markets despite the relatively flat spend
and shipment indexes compared to Q2. For example, for-hire
truckload contract freight volumes outperformed less-than-truckload
volumes, and within the truckload market specifically, contract
freight performed better than did spot volume activity.”
“The significant rise in the freight spend volume compared to
the third quarter of 2018 is good news leading into the 2019
holiday season,” said Bobby Holland, U.S. Bank vice president and
director of Freight Data Solutions. “But we remain cautious with
our level of optimism. While consumer spending appears to be the
driving force behind a lot of the increased spending, we have to
contrast that positive news with the knowledge that more and more
motor carriers continue to exit the business, and that’s a trend
that could continue.”
To see the full report including in-depth regional data, visit
the U.S. Bank Freight Payment Index website.
U.S. Bank pioneered electronic freight payment more than 20
years ago. The U.S. Bank Freight Payment Index measures
quantitative changes in freight shipments and spend activity based
on data from transactions processed through U.S. Bank Freight
Payment. The business processed more than $27.6 billion in 2018 for
some of the world’s largest corporations and government
agencies.
U.S. Bancorp, with 74,000 employees and $488 billion in assets
as of September 30, 2019, is the parent company of U.S. Bank, the
fifth-largest commercial bank in the United States. The
Minneapolis-based bank blends its relationship teams, branches and
ATM network with mobile and online tools that allow customers to
bank how, when and where they prefer. U.S. Bank is committed to
serving its millions of retail, business, wealth management,
payment, commercial and corporate, and investment services
customers across the country and around the world as a trusted
financial partner, a commitment recognized by the Ethisphere
Institute naming the bank a 2019 World’s Most Ethical Company.
Visit U.S. Bank at www.usbank.com or follow on social media to stay
up to date with company news.
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version on businesswire.com: https://www.businesswire.com/news/home/20191023005157/en/
Leslie Ingberg, U.S. Bank Public Affairs & Communications
612.303.2374 leslie.ingberg@usbank.com
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