Rail Traffic Resumes Surge

Total N. American rail traffic surged 111K last the 687k, the highest level in 6 weeks. All US and Canadian carriers saw substantial gains. Large percentage increase were seen in stone and chemicals. This tells me we have underlying construction and manufacturing strength in the economy as these are both “base level” indicators. For finished good motor vehicles saw a 40% increase. Last year chemicals saw only a modest improvement and auto’s were up 20%.

The data at this point seems to indicate a strengthening US economy going into the end of the year.

The chart has same week (48) circled in red for YOY comps.