Summary：China’s rail cargo volume year-on-year growth improved from -5.4% in September to -3.2% in October. Compared with September, rail freight volume increased from 307 million tonnes in September to 325 million tonnes in October.

China’s rail cargo volume year-on-year growth improved from -5.4% in September to -3.2% in October. Compared with September, rail freight volume increased from 307 million tonnes in September to 325 million tonnes in October.

This data point fits with some of the other recent data which suggest a pick-up in economic activities in the final quarter. The chart below shows the year-on-year growth of freight volumes and GDP growth, while the second chart shows the actual level of rail cargo volume. The magnitude of the fall in rail cargo in the current economic slowdown is comparable to the previous slowdown during the financial crisis (ignoring the Chinese New Year impact). However, it is picking up in October according to official data.