US Service Sector Shrinks Unexpectedly Ending 10month Growth Streak

US Service Sector Shrinks Unexpectedly Ending 10month Growth Streak

The US Services PMI unexpectedly fell below 50 in May, ending ten consecutive months of growth. A significant decline in new orders was primarily driven by trade friction and uncertainty. Sector performance was mixed, with slight employment growth. The future development of the service sector needs to address challenges related to trade, inflation, demand, and supply chains, while also seizing opportunities in technological innovation and consumption upgrades. The unexpected contraction raises concerns about a potential economic slowdown and the impact of ongoing trade tensions on the service sector's performance.

01/19/2026 Logistics Industry Insights
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ATA Urges FMCSA to Review Trucking Safety Ratings Over Data Bias

ATA Urges FMCSA to Review Trucking Safety Ratings Over Data Bias

The American Trucking Associations (ATA) is urging the Federal Motor Carrier Safety Administration (FMCSA) to reassess its fleet compliance review process and Safety Management System (SMS) to eliminate geographical bias and address data reliability concerns. The industry widely questions the fairness and accuracy of the current safety rating system, suggesting simplification and avoidance of reliance on CSA/SMS. FMCSA needs to consider all perspectives to improve the assessment system and ultimately enhance road safety. This requires a thorough review of existing methodologies and implementation of necessary changes to ensure a more equitable and effective system.

01/22/2026 Logistics
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California Trucking Industry Faces Uncertainty Under AB5 Law

California Trucking Industry Faces Uncertainty Under AB5 Law

The Ninth Circuit Court of Appeals ruled against the California Trucking Association, challenging the use of independent contractors by trucking companies in California. The AB5 law's strict ABC test is at the heart of the dispute, creating a legal impasse for the industry. The trucking industry faces uncertainty and potential significant changes to its business model. The case may be appealed to the Supreme Court for a final decision, potentially impacting the gig economy and the definition of independent contractors nationwide. The ruling's implications extend beyond trucking, raising concerns for other industries relying on independent contractors.

01/15/2026 Logistics Industry Insights
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