American consumers have become very good buyers, he said. Consumer debt reflects wealth. That means wealth. Still, debt is up and consumer spending is slowing, he said. Recent moves by the Federal Reserve may slow spending even more, and Mr. Toja expects reduced consumer spending in the next two or three quarters.
Automotive production is steady.
What personal spending there is will be good for freight companies, Mr. Toja said. While new car sales will be flat this year, domestic production will be up due to light truck sales. Most of the light trucks sold in the U.S. are built here, and more importers are building their vehicles here as well. These transplant factories will need to be serviced. Demand in Mexico and Canada will grow in 1997 and 1998.