Economics
U.S. Freight Industry Downshifts From Hectic Pace for Shipping
- Logistics managers gauge fell to lowest since January 2021
- Survey-based index shows economy is cooling, not contracting
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A gauge of logistics stress in the U.S. economy eased in April as freight transportation cooled, a sign that the broader economy is downshifting to a speed that remains expansionary.
The survey-based Logistics Managers Index fell from a record high in March to 69.7 last month, the lowest level since January 2021 and first drop this year. While the inventory and warehousing components showed only modest changes, transportation showed the biggest moves -- with prices falling and capacity returning to positive territory for the first time since May 2020.