As the year’s third quarter begins, the economy is uncertain. Despite positive news from Congress and the Federal Reserve in the past few weeks, many experts still hesitate to say the economy is rebounding. What does this mean for the transportation industry? Let’s take a look.
Renewed Hope From The Fed
The Federal Reserve announced a delay in more interest rate hikes this week, giving many a sense that post-pandemic economic recovery may not cost the economy nearly as much as previously predicted. People across the country felt the effects of the implemented increases in interest rates to lower inflation, but they often caused an increase in unemployment and harmed economic growth. While most officials still project two more increases by December, hopes are higher regarding hiring and growth for Q3.
Expected Increase in Hiring in Q3
Hiring is expected to increase by five percentage points in the US from last quarter. Globally, hiring is at a deficit year-over-year, but this is likely due to the rapidly changing economic situation in the pandemic recovery. The world’s largest economies are seeing an increase in hiring from last quarter, which is good news for the transportation industry.
While the manufacturing industry is increasingly moving back to the US, the transportation industry still relies heavily on China. Many predict an uptick in China’s economy in Q3 and hope for better US-Chinese relations. This improvement could increase the output of goods imported from China and incentivize the country to work with the US. In this case, demand for American drivers may increase, more good news for the industry.
Many are predicting a less eventful Q3 in 2023 than the year’s first half, with the global economy growing from the last quarter. This upturn should bring gains for the transportation industry in the US.
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