- The Cass Freight Index, a broad measure of freight shipments, fell 3.2% year over year in April — even before the announcement of new tariffs on Mexico. The April report outlined a “material and growing downside risk to the economic outlook.”
- In notes to clients Monday, Morgan Stanley and Credit Suisse warned of red flags in the transportation market that could signal trouble in the broader economy.
- “While we have seen many data points the past month supporting our view for an earnings recession and economic slowdown, none were as convincing as the Cass Freight Index report for April,” strategist Mike Wilson said in a note to clients Monday.
A slowdown in trucking and transportation is causing some on Wall Street to worry about an impending slowdown in the U.S. economy.
The Cass Freight Index, a broad measure of freight shipment activity, fell 3.2% in April from the previous year. That drop was before President Trump’s surprise announcement of new tariffs on Mexico, suggesting growth was “slowing before the trade tensions re-escalated,” Morgan Stanley strategist Mike Wilson wrote in a note to clients Monday.