Total N. American rail traffic clocked in at 670K cars last week, 7% over 2010 and 26% over 2009. for those 4-week moving average followers, the 4 week average went up from 665k to 671k. Here is the most recent chart:
Regular readers know we follow two main economic data points as a primary tell for the economy (we of course follow others but we consider these to be the ones much of the others build off), Rail and temporary employment.
I recently came across the following chart that shows the correlation bewteeen the two:
Now, we also know that tempo staffing is a 3-4 month indicator for the NFP (non-farm payroll) number and that is a tell for GDP. So, to boil it down, make it simple and eliminate a ton of the “noise” out there, sticking to the base indicators, rails and temp. employment will not only put you ahead of most of the more widely followed indicators but IMO give you a more accurate assessment of the economy looking forward.