ATA Disputes AJA’s Safety Conclusions
Aug 27, 2009 12:23 PM
That impacts trucking significantly because home construction materials such as lumber, drywall and roofing are heavier shipments and help boost tonnage levels, said Headley.
On one other positive note, the Institute for Supply Management (ISM) reported in its most recent manufacturing sector survey that new order and production indexes are rising, pushing its purchasing managers index (PMI) up to 48.9% from 44.8% in June. Readings above 50% indicate economic growth while readings below 41% indicate economic contraction, the group noted.
“[The PMI] is still below 50% but it’s trending in the right direction,” said ATA’s Headley. “That increase has also been the highest since August 2008.”
“The decline in manufacturing was slower in July when compared to June, as the more leading components of the PMI — the New Orders and Production Indexes — rose significantly above 50%, thus setting an expectation for future growth in the sector,” said Norbert Ore, chairman of the ISM’s manufacturing business survey committee.
“The Employment and Inventories Indexes are still contracting, but the rate is slowing and they are moving in the right direction,” Ore added. “It is also worth noting that the New Export Orders Index shows growth following nine consecutive months of decline, suggesting that the global economy is recovering. Overall, while it would be difficult to convince many manufacturers that we are on the brink of recovery, the data suggests that we will see growth in the third quarter if the trends continue.”
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