Future Freight Trends Show Promise

generic_containers.jpgWASHINGTON, DC-A trio of reports for May and June show a continued downturn in statistical measures relating to users of industrial real estate. While the negative trends suggest demand for space is unlikely to pick up in the immediate future, there are signs that at least some of the measures may have bottomed or are close to bottoming, which could lead to a resurgence in demand late this year or early next year.

According to the latest report from the US Census Bureau, the nation’s shipments of manufactured durable goods fell in May for the tenth consecutive month, lengthening what was already a record streak of declines. Following a 0.5% drop in April, shipments in May dropped another 2.1% to $169.9 billion. Meanwhile, unfilled orders and inventories also continued their record declines, with the former decreasing 0.2% to $747.3 billion and the latter falling 0.6% to $513.3 billion. The two measures have fallen for eight and nine consecutive months, respectively.

On the other hand, new durable goods orders increased for the third time in four months, rising 1.8% to $163.9 billion. They increased by the same percentage in April. In addition, orders for nondurable manufactured goods increased 0.7% in May to $184.5 billion, while shipments of petroleum and coal products rose 8.3% $2.5 to $32.3 billion. Some analysts believe the boost in new orders and surge in energy shipments indicate the economy may have bottomed out and begun to move upward.