One of the preferred gauges of economic activity by our dear vice premier, Li Keqiang, continues to weaken.
Rail cargo volume growth fell further from -8.2% yoy in July to -9.2% yoy in August, the worst since the financial crisis. Cargo volume transported by the railways amounted to 304 million tonnes in August 2012, slightly below 305 million tonnes in July.
Meanwhile, other modes of transportation, which do not have tight correlations with GDP growth continue to grow (or decline) rather randomly:
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Looking at the actual level instead of year-on-year changes, the magnitude of decline from the peak in the current slowdown is already very similar to the magnitude of decline for the financial crisis:
