A slowdown in trucking and transportation is causing some anxiety across Wall Street that the U.S. economy might be decelerating.
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A slowdown in trucking and transportation is causing anxiety among some on Wall Street who worry the U.S. economy might be decelerating.
The Cass Freight Index — a broad measure of freight shipment activity — fell 3.2% in April from the previous year. The drop came before President Donald Trump's surprise announcement last week of new tariffs on Mexico, suggesting growth was "slowing before the trade tensions re-escalated," Morgan Stanley strategist Mike Wilson said in a note to clients Monday.
 While Wilson said he's seen other other data points the past month hinting at an earnings recession and economic slowdown, "none were as convincing as the Cass Freight Index report for April." Credit Suisse analyst Allison Landry said it's "hard not to be worried" considering preexisting freight red flags — even without an escalating trade war.
To be sure, the Cass report's author, Donald Broughton, said more data in coming weeks is needed before deciding whether or not this is "merely a pause in the rate of economic expansion, a retrenchment, or the beginning of an economic contraction." But falling oil prices and five straight months of negative shipment volume are painting a bleak picture. With April's drop, Broughton said there is a "material and growing downside risk to the economic outlook."
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