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Opinion * USA - The mysterious trouble in the trucking industry
The economy's message is: Keep on truckin'!
USA -Slate, by Daniel Gross -Feb. 2, 2007: -- Even though GDP growth in the 2006 fourth quarter was much better than expected, the stocks of trucking companies, usually an important leading indicator for the economy overall, are mysteriously struggling... Transport stocks are canaries in the coal mine for the Dow... Here's a very long-term chart of the Dow Jones Transportation Average against the Dow Jones Industrial Average. Since they move the goods, a slowdown in transport companies' business usually previews an overall slide. But here's where it gets weird. In theory, the fortunes of all the components of the Transport Index, which include shippers, truckers, railroads, and airlines, should move somewhat in tandem. Most goods that are sent by ship, rail, and air have to go on a truck at some point. It would be strange for one link in the freight chain to be doing well while others are dragging... And yet that's precisely what seems to be happening...
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posted by Unknown @ 1:34 PM
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