Business: Boost for Trucking

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After its worst first quarter since World War II, the trucking industry last week saw signs that business is picking up. Tonnage hauled in May was 2.6% above April (though still down 5.8% from last year). Truckers expect the June figures to show a bigger rise. To economists, who consider trucking a good index of general business conditions, it was another cheering sign of improvement in the U.S. economy. Truckers haul about 20% of the nation's freight —and because most of their freight is finished products rather than raw materials, they are sensitive to a pickup in sales.

Most of the improvement showed up in the West, the Southwest and the Rocky Mountain region; truckers in the Midwest, the South and along the Atlantic Coast were still in trouble. Building materials hauled were up 12.2% for the first quarter above last year, reflecting the rise in construction, and shipments of liquid petroleum, household goods and refrigerated liquids and solids were also up.

The American Trucking Association believes that profits are also edging up, after plunging 98%, in the first quarter. Faced with the prospect of better business, the big companies are going ahead with capital expansion plans. Continental Transportation Lines expects to spend more than $400,000 on additions to garage and new equipment; Interstate Motor Freight plans to get three smaller shipping companies; Ryder System will spend $1,000,000 on new equipment.