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Is the transportation sector signaling the next recession?

Transportation
0 min read

(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)

Freight shipments fell 5.3% in June after having fallen 6.0% in May.  June was the seventh month in a row of year-over-year declines.  Transportation is viewed as a leading indicator of the economic activity because it reflects buyer optimism regarding the future.  A study by the Bureau of Transportation Statistics estimates that transportation volumes lead business cycles by approximately four months.  Should investors view the decline in transportation shipments as a sign of upcoming economic weakness or even a recession?

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