Wells Fargo, ACT Research experts forecast economy for 2023
Summary
During an economic update presentation Monday at the Truck Renting and Leasing Association (TRALA) Annual Meeting in Bonita Springs, Fla., Tam and Wells Fargo’s Sarah Moore discussed the possibility of a slowdown coming for the economy in 2023 and how to evaluate it against other recent recessions. Moore says that has put the Fed in a tight spot, as it needs to continue altering rates to drive inflation lower without crippling job growth or forcing consumers out of the market. [RELATED: Dana CEO says partnership is the new leadership as EV adoption rates grow] Tam says what the Fed does will trickle down to the trucking industry as shippers alter their freight demands. He says there are still “an awful lot of reasons to buy new trucks” and says carriers who have been hungry for an influx of new equipment are unlikely to change their purchasing plans due to a bad quarter or two. Tam says the company’s reasoning for that is two-fold — longstanding demand since 2021 is likely to finally supplied this year, and any reduction in freight levels in 2023 will likely not hit carrier business plans until 2024.