Rail Traffic Says There’s No Recession

Weekly U.S. rail traffic has recently seen a spike during these recessionary times, dispelling worries of an economic collapse.

Last week according to the Association of  American Railroad, rail traffic carried 721,000 cars, up 17,000 from the 704,000 cars the week before. This represents the highest number since pre-Lehman days in 2008, which was complemented by an increase in auto sales earlier this week.

If the U.S. does enter a recession, it will be the first time that it has done so with increases in both rail traffic and auto sales.

Stocks gaining from this traffic spike included CSX Corporation (NYSE:CSX), Norfolk Southern Corp. (NYSE:NSC), Union Pacific Corp. (NYSE:UNP) and Kansas City and Southern (NYSE:KSU).