Trucking Volume Hits The Brakes, Consumer Demand Faltering

The trucking industry continues to decelerate into year-end at a time when it should be rocketing higher ahead of the holiday season. Old Dominion Freight Line reported 3Q19 earnings last Thursday and warned the domestic economy is slowing. The freight company reported revenue declines Y/Y for the quarter, which was the first drop since 2016.  The rare decline in revenue from Old Dominion is a sign that the domestic economy is faltering, and it’s likely being led lower by deteriorating consumer demand. This means the manufacturing recession has successfully transmitted weakness into the consumer segment of the economy, which accounts for 70% of GDP.