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Are Heavy Trucks Leading The Recovery Caravan?


Economic Trends

ARE HEAVY TRUCKS LEADING THE RECOVERY CARAVAN?

Keep your eye on sales of heavy trucks, advises economist Anthony Vignola of Kidder, Peabody & Co. He notes that real business outlays on trucks have jumped at an 18.3% annual rate so far in 1992--the only category of capital spending except information-processing equipment that is in the plus column this year.

Significantly, the rise in truck sales coincides with a surge in trucking activity, with the volume of goods shipped up by 14% so far this year and 27% since 1990. Although changing inventory practices and increased trade with Canada and Mexico are bolstering trucking, Vignola thinks the gains posted by this highly cyclical industry also point to a quickening economic recovery.GENE KORETZ


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