Despite rising COVID-19 omicron cases, the U.S. economy reported strong GDP growth of 6.9% during the October - December period, exceeding the estimated 5.5%. The GDP growth was fueled by record holiday retail sales and increased private inventories.
However, the railroad industry was adversely impacted by reduced consumer spending last month amid rising omicron variant cases and global supply chain issues. In fact, according to the Association of American Railroads, U.S. weekly rail traffic fell 9.8% year-over-year for the week ended Jan. 22, 2022. However, as omicron concerns fade, consumer spending is expected to bounce back, driving a strong comeback for the railroad industry. According to a Reportlinker.com report, the global rail freight market is expected to grow at a 2.2% CAGR over the next four years to $29.29 billion by 2026.
