A downward drift in commodity prices, tighter financial conditions, and seasonally weak consumer spending have caused freight volumes to soften throughout the Spring. On the bright side, freight activity through March held above the levels of the entire 2nd half of last year. Further, seasonal tailwinds as summer approaches, fiscal stimulus, cooling inflation, a robust labor market, improving supply chains, and a recent pulse in the housing market should dampen further downside pressure across the macro landscape and, likewise, the freight market. Nonetheless, given that policy rates are now the highest since 2007, coupled with the ripple impacts of global financial stresses, BMO economists believe that Canada is unlikely to avoid a mild, two-quarter recession this year, followed by only sluggish growth next year.
Industry Update Spring 2023: Canada Truck Transportation
