Logistics and business manufacturing: Economic indicators are positive, but freight levels have not caught up

WASHINGTON and NEW YORK—While the recession continues, many reports indicate the economy has “bottomed out” and that a recovery may be in the works.

Some recent examples of a potential turnaround are:

• last week’s news from the Commerce Department that durable goods orders were up 1.9 percent in April at $161.5 billion;
• a recent analysis from freight transportation consultancy FTR Associates indicating that the worst of the recession is over, estimating that GDP growth will rise 2.7 percent in 2010 although “the road to recovery is likely to be difficult” and
• a report from the Conference Board indicating its Consumer Confidence index was up for the third straight month in May.

What’s more, recent data from Panjiva, an online search engine with detailed information on global suppliers and manufacturers, indicates that the number of global manufacturers shipping to U.S. customers was up for the second consecutive month, with February to March and March to April data up two and eight percent, respectively. Even though this appears to be positive, Panjiva CEO Josh Green told LM more stability is needed for a true turnaround.

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