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John’s Blog
August 31st, 2009
Dear Friends,
The positive economic news continued
last week with US home sales up 9.6% in July, the fourth straight
month of increase. Also positive was the Commerce Department
reporting orders for durable goods rose in July by the largest amount
in two years.
It is a positive that consumers are
starting to spend again, even if it is helped by the Cash for
Clunkers program. With consumers tending to save instead of spend
this is a significant event showing people will spend if they see a
good deal.
Now that the technical recession seems
to have ended the next thing for us to worry about is inflation.
With all of the liquidity the government has pumped into the economy
the experts are saying we should expect inflation to run 3 to 3.5%
which is up from the 1 to 1.5% we have been experiencing. The Fed has
to keep monetary policy loose to keep from backsliding into the
dreaded double recession scenario so this will be interesting to
watch.
In transportation the American Trucking
Association said that U.S. truck tonnage fell 10.4% in July from the
same month last year, the best year-to-year showing since February.
Seasonally adjusted, the truck tonnage index was 2.1% better in July
from June.
The good news is that freight volumes
seem to have hit bottom and are now clicking upwards, albeit slowly.
If the carriers in trouble now can hold out until 2010 they have a
chance of survival. By then manufacturing should be replenishing
inventory.
With YRC on their 10th
credit amendment one can be sure they have their fingers crossed.
At Wagner we are doing well with
several new opportunities. It has been a long time since I have seen
lease rates as competitive as they are now. Now is a good time to
lock in the present low rates in industrial real estate if a
distribution center need is out there.
Please let me know if there is any
distribution center or transportation opportunity in your company as
you review your plans for 2010.
Have a great week!
John
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John's Blog 
