Rail Traffic Surges To A 3 Year High, Reducing Inflation Fears

Includes: BRK.A, BRK.B, CSX, KSU, NSC, UNP
by: Todd Sullivan

If we enter a double dip, it will be the first time the US has ever done that with both increasing rail traffic and auto sales. Because of that, recession talk, needs to be discounted even more, especially given this data in conjunction with Sept auto sales coming in at 13.1M SAAR, GDP for Q2 being revised UP, ISM, ISI numbers still showing expansion and employment numbers grudgingly improving.

Total N. American rail traffic last week came in a 721K cars, up from 704K the week before and the highest levels since pre-Lehman 2008. In short, a GREAT number.

As for the “what” was shipped, auto shipments were the highest in over 2 years. Of the carriers, [[CSX]], [[NSC]], [[BRK.A]], [[KSU]] and [[UNP]] all saw gains.

Here is the chart:

Capture352 624x284 Rail Traffic Surges to 3 Year High