As we enter the second quarter, the setup couldn’t be much more favorable to carriers. The Outbound Tender Volume Index (OTVI) retreated 4% this week but remains not far off of an all-time high at 15,178.
The economy is in full-on recovery mode, driven by stimulus-aided consumer spending. But the consumer economy is not the only sector in growth mode. The ISM Purchasing Managers Index for the manufacturing sector rose to 64.7 in March, the highest reading since December of 1983.
The National Association of Home Builders/Wells Fargo Housing Market Index has declined since its all-time high in November but remains extremely high at 82.
The economic recovery paired with Americans still being unable to spend on big-ticket services has created a near-perfect backdrop for carriers in Q2. The Port Report, produced by the National Retail Federation and Hackett Associates, is calling for imports to “set records now into the summer” as consumers keep spending on goods.
(Chart: Bank of America)
The most recent stimulus round is providing a massive boost to consumers, who by and large are still stuck at home. Working from home has been a major success for millions of Americans, and people keep spending on at-home upgrades like furniture and online electronics.
Service-based spending categories like airlines, lodging and restaurants all were positively impacted by the stimulus, but the top 5 biggest growth segments came in goods. With…
