Union Pacific (UNP) will enjoy better comparable metrics in 2017 after suffering a 7% decline in volumes in 2016. With an uptick in manufacturing, railroads should see an increase in the shipment of metals, petroleum, iron, steel, scrap and lumber. President-Elect Donald Trump's mission to improve America's economy will likely have a positive impact on the rails.
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The Purchasing Managers' Index (PMI) increased to 54.3 in December of 2016 from a preliminary reading of 54.2 and 54.1 in November. It is the highest value since March of 2015, boosted by rises in new orders and production volumes and the fastest upturn in payroll numbers since June of 2015.
Union Pacific ended 2016 with a 7% decline in rail volume compared with 2015, with a total of 8.4 million carloads/intermodal units shipped in 2016 compared with 9 million the year before. UNP saw big declines in the shipment…