Troubling Transportation

The Dow Jones Transportation Average, which tracks 20 large US firms including trucking, airlines, and railroads fell 12% month-to-date, double the decline of the S&P 500. Declines in transportation suggest less need for goods, materials and travel, unsurprising given high and rising rates. Overall, the index is down 26% this year, slightly worse than the 23% fall in the S&P 500. This is yet another recession warning worth heeding.