Transportation Sector Continues to Flash Caution
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The transportation sector in the US has been underperforming and is a crucial component of the economy, contributing approximately $1.2 trillion (5.4% of the US GDP). It encompasses various modes of transport and employs around 10.68 million Americans. Transportation emissions account for 27% of total US greenhouse gas emissions. The trucking industry is responsible for 72.5% of freight transportation. The sector requires ongoing investment in infrastructure. The Transportation Services Index (TSI) measures the volume of freight and passenger transportation services and can provide insights into economic shifts. Currently, the TSI is far from indicating a recession. Transportation stocks, such as IYT, have been underperforming, potentially signaling investor concerns about a potential recession. The freight TSI tends to be a lead indicator. The recent underperformance of the transportation sector may indicate a normal correction, a soft landing, recession, or stagflation. The article also mentions issues with inflation costs, shortage of construction workers, and accountability of benchmarks and ROI in the implementation of the $1.1 trillion infrastructure bill passed in 2021.

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https://www.investing.com/analysis/transportation-sector-continues-to-flash-caution-200648281