Post office reports falling mail volume
WASHINGTON — The Postal Service had a $384 million loss in the October-December period, usually a profitable time for the agency because of holiday cards, gifts and catalogs.
But the worsening recession pushed mail volume down by 5.2 billion pieces compared to the same period a year earlier.
It was the eighth consecutive quarter that mail volume fell by increasing amounts. Without an economic recovery, mail volume for the year could be down 12 million to 15 million items, the post office said.
The post office lost $2.8 billion last fiscal year and if current trends continue the loss could be much greater this year.
A rate increase is scheduled to take effect in May, but the amount has not yet been announced. Because rates are tied to inflation a 2-cent increase in the 42-cent first-class price is likely. Officials could seek a higher rate, citing the extraordinary economic conditions, but they are concerned that could lead to even greater declines in business.
