A curious disconnect continues to form between overall economic trends, which are trending downward, and freight markets that are witnessing growth in volumes and pricing for carriers.

According to Jon Langenfeld, transportation analyst with investment firm Robert W. Baird & Co., a “significant” improvement in truckload utilization or loaded miles per truck is occurring; a result of ongoing capacity rationalization. “Notably, utilization is trending toward levels experienced in 2005, 2006 and early 2008 – periods of freight rate growth,” he said in Baird’s most recent “Freight Flow” report.

Though freight demand is moderating to a degree – Baird’s Freight Index was up 5.6% in July this year versus the same month in 2009, compared to 6.4% in a similar June-to-June comparison – Langenfeld pointed out that July’s 2% seasonal decline in freight volume is modestly better than the traditional 4% seasonal summer drop off.

“Our private company contacts reveal some signs of slowing, though broad-based [freight] demand trends appear healthy,” he added, noting that without strong capacity growth, increasing freight demand will further exacerbate tight supply conditions. Langenfeld explained such conditions in the freight market should occur even with modest U.S. economic growth, with gross domestic product (GDP) increasing 2% or more.

By contrast, the overall economic picture is gloomier. For example, the National Assn. of Realtors recently report reported that sales of previously owned homes fell 27.2% from June to a seasonally adjusted rate of 3.83 million – the lowest level since the group started tracking the data in 1999. On top of that, the Labor Department noted the U.S. unemployment rate has inched up to 9.6%.

“The economy is especially vulnerable when it comes to additional negative economic shocks, whether they come from credit markets, the geo-political environment, the policy environment or other unforeseeable areas,” noted George Mokrzan, senior economist for the Columbus, OH-based Huntington Bank.

Mokrzan pointed out that, although housing prices are improving and interest rates remain low, consumer spending remains sluggish because of a weak labor market and concerns about an    increasingly glum U.S. government debt outlook.