Monday, October 10, 2011
Mark Perry has some good background on this. I'm adding my chart to the mix since it shows both total expenditures and an index of shipping activity. Activity is up 7.5% in the year ending Sept. '11, while expenditures are up 15%. Expenditures have risen much faster than shipments since the recent recovery began, suggesting that freight companies are enjoying some decent pricing power. The strong rise in shipping activity in the past year and in recent months is one more sign that the U.S. economy is not on the cusp of another recession, and the strong gains in expenditures belie even the hint of deflation. On the contrary, economic activity and cash flows are definitely improving according to these figures.
Posted by Scott Grannis at 4:00 PM