Today we saw GDP for Q3 print 2.5% growth. Do you know who is not at all surprised by this? Anyone who has followed rail traffic data this year. It was telegraphed all along. Rail traffic mean economic activity, if it is growing, so is the economy, period. There is no other explanation at all. It is remarkably simple actually
Last week total N. American rail traffic measured just under 702k cars, up from 698k the prior week and above last years highest levels. Particular strength was seen in autos which measured their second strongest week in 3 years. The strongest week in the last three years was three weeks ago. This tells us the US auto market is seeing continued increases in demand as Q4 begins. The strongest category was stone and related products (think construction).
Of the carriers ($UNP, $CSX, $KSU, $BNI ($BRK.A) and $NSC) none saw significant movement in either direction.
Here is the chart:
