“US Recession Imminent: Cargo Transportation Index Falls to 2021 Low”

Investing.com – While a recession has not yet been officially confirmed in the US, one looks increasingly imminent, as evidenced by slowdowns in key parts of the country’s economy, writes Business Insider.

In particular, one of the evidences that directly, and not indirectly indicate the onset of a recession in the American economy in the near future, are the indicators of cargo transportation – for several months this sector has been warning that problems lie ahead.

Already, the United States is experiencing a decline in cargo transportation, that is, in fact, the number of trucks delivering goods across the country has decreased. This slowdown, in turn, has caused diesel prices to nearly halve since May last year, with wholesale diesel sales falling from $5.34 to $2.65.

Industrial fuels, which are used to power cars and vehicles, have also begun to become cheaper, albeit for a different reason – due to a warmer than expected winter. Reduced factory production and weaker demand for trucks led to a further decline in fuel prices.

The American Trucking Association’s contract truck tonnage index fell to its lowest level since August 2021, while domestic demand for diesel fell 8.4% year-over-year.

But sectors other than freight are also showing classic indicators of a recession, with the Conference Board’s leading economic index falling for the 12th straight month, and the New York Fed’s Recession Probability Model estimating a 57% chance of an economic downturn.

— Materials from Business Insider were used in the preparation

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