Econintersect: Week 45 of 2014 shows same week total rail traffic (from same week one year ago) grew according to the Association of American Railroads (AAR) traffic data. Rail growth this week continues to demonstrate an improving economy – but the rate of growth softened in all of the rolling averages reported below. Even with this relatively soft period, rail counts are growing faster than the economy when viewing year-over-year.

This analysis is looking for clues in the rail data to show the direction of economic activity – and is not necessarily looking for clues of profitability of the railroads. The weekly data is fairly noisy, and the best way to view it is to look at the rolling averages which generally are in a general growth cycle.

A summary of the data from the AAR:

The Association of American Railroads (AAR) today reported increased U.S. rail traffic for the week ending Nov. 8, 2014 with 297,694 total carloads, up 0.2 percent compared with the same week last year. Total U.S. weekly intermodal volume was 271,113 units, up 2.2 percent compared with the same week last year. Total combined U.S. weekly rail traffic was 568,807 carloads and intermodal units, up 1.1 percent compared with the same week last year.

Five of the 10 carload commodity groups posted increases compared with the same week in 2013, including and nonmetallic minerals with 38,304 carloads, up 13 percent, and petroleum and petroleum products with 16,186 carloads, up 12.4 percent. Commodity groups that posted decreases compared with the same week in 2013 were led by motor vehicles and parts with 16,868 carloads, down 12.8 percent.

For the first 45 weeks of 2014, U.S. railroads reported cumulative volume of 13,128,434 carloads, up 3.5 percent compared with the same point last year, and 11,730,192 intermodal units, up 5.4 percent from last year. Total combined U.S. traffic for the first 45 weeks of 2014 was 24,858,626 carloads and intermodal units, up 4.4 percent from last year.