Steeper US rail cargo decline points to weak spots in economy

Washington

A SHARPER decline in US railroad cargo this quarter points to weak spots in the US economy as a strong dollar crimps exports, retailers whittle down excess inventory and energy investment stalls.

Union Pacific, Warren Buffett's BNSF Railway Co and other large US railroads have posted a 5.1 per cent drop in carloads since the beginning of October, topping decreases of 1.6 per cent in the third quarter and 1.8 per cent in the second. A decline in consumer-related cargo this quarter is adding to weakness in industrial and energy traffic.