LOS ANGELES (Reuters), A transportation report that was closely monitored on Thursday indicated “the possibility of freight recession” because inflation rises and disposable income is eroded.

Because freight transportation can be viewed as an indicator of the U.S. economic health, when there is less goods purchase, trains and trucks carry less cargo. Business activity also slows down.

The April report by the Cass Freight Index said that after a two-year period of increasing freight volumes, the freight cycles has slowed down with a thud.

According to the April report by Cass Information Systems Inc, which is closely monitored by investors and analysts, U.S. freight volume fell from March.

After a 0.6% increase in March, the shipments portion of the index decreased 0.5% in April.

April’s shipments decreased 2.6% from March and was 0.9% lower than the usual seasonal pattern.

According to the report, “Weaker comparisons will be possible in the near future as supply chain disruptions worldwide are expected to increase.”