Economic News

The initial reading of the U.S.’s first-quarter economy performance showed that we are still far from normal. However, with more vaccines delivered and business restrictions easing, consumers are feeling more confident about the outlook and are starting to spend more freely. Gross domestic product grew by 1.6% in the first quarter of 2021. Economists predict that total economic output should return to prepandemic levels by summer.

In the way of job growth, however, the U.S. economy only gained 266,000 jobs in April. This is down significantly from widespread forecasts of 1 million plus jobs. The unemployment rate rose from 6% to 6.1%, contrary to expectations. Yet, still down from the historic peak of 14.8% last April when it was the highest since the Great Depression.

Economic Indicators

The April Purchasing Managers Index registered at 60.7%, down 4 points from March. The figure still indicates overall economic growth, however, as a score above 50 reflects expansion. The New Orders Index registered at 64.3% in April, declining 3.7 points from the previous month. The Production Index was at 62.5%, down 5.6 points from March.

Architecture firms continued to see strong business conditions in March as the Architecture Billings Index registered at 55.6 for the month. A score above 50 indicates an increase in firm billings.

The Consumer Confidence Index rose sharply again in April, now standing at 121.7, up from 109 in March.

Industry News

Construction spending rose in March to a seasonally adjusted annual rate of $1513.1 billion. This is a 0.2% increase from the previous month and a 5.2% increase from February 2020. Construction spending for the first quarter rose 4.5% year over year.

Pending home sales picked up after two straight months of declines, rising 1.9% in March. This is indicative of high housing demand.

Stainless steel output is rebounding strongly since the second half of last year. However, supply continues to be an issue for nickel. It is predicted the market will remain in surplus the rest of the year.

For more information, check out the Metalwest Market Insight Guide below or contact your local sales rep.

U.S Economic News

The U.S. economy got off to a modest start over the first weeks of this year. According to the Federal Reserve, businesses are optimistic about the next 6-12 months and the demand for housing is robust. However, the labor market is not gaining as much traction as had been hoped.

U.S. employers added 379,000 jobs in February after a disappointing 166,000 jobs in January. As COVID cases decline and the vaccine becomes more widely distributed, states are allowing businesses to ease restrictions. The February job growth was propelled mostly by a surge in leisure and hospitality employment. Economists expect to see job prospects to improve in the coming months as more and more Americans get vaccinated.

Economic Indicators

The Consumer Confidence Index improved again in February, after increasing in January. It now stands at 91.3, up from 88.9 in January.

The February Purchasing Managers Index registered at 60.8%, an increase of 2.1 points from January, indicating expansion in the overall economy for nine consecutive months. The New Orders Index came in at 64.8%, up 3.7 points from the previous month. The Production Index registered at 63.2%, up 2.5 points compared to January.

January’s reading of the Architecture Billings Index rose slightly to 44.9 compared to 42.3 in December. However, the score is still below 50. Any score below 50 indicates a decline in firm billings.

Steel Industry News

Steel is in short supply in the U.S. and prices are continuing to surge. Unfilled orders for steel were at the hightest level in 5 years last quarter. Inventories were at a 3 1/2 year low, according to the Census Bureau. These soaring prices are driving up costs and squeezing profits at steel-consuming manufacturers, causing a new round of calls for an end to former President Donald Trump’s steel tariffs.

The Midwest aluminum premium has risen to a nearly 16-month high. Market participants point to supply issues. Sources expect the supply to run dry in a few months unless imports can return to the U.S. market. With no imports coming in, the premium will continue to increase.

For more information, view the March 2021 Market Insight Guide below or contact your local sales rep.

Economic News

The U.S. economy grew at a 4% annual rate in the final three months of 2020 and shrank by the largest amount in 74 years as the global pandemic held strong.

In late January, the government estimated that the nation’s gross domestic product slowed sharply in the fourth quarter of 2020 after a record 33.4% surge in the July-September quarter. That gain followed a record-breaking 31.4% annual plunge in the April-June quarter, when the economy plunged. 

The outlook for 2021 is still clouded as economists warn that a sustained recovery won’t likely take hold until vaccines are distributed and administered nationwide and government aid spreads throughout the economy. This is likely to take months.

U.S. employers barely added any jobs last month, underscoring the pandemic’s ongoing grip on the economy. The increase of just 49,000 jobs in January hardly made a dent in the nearly 10 million jobs that remain lost since the virus intensified nearly a year ago. The unemployment rate fell from 6.7% to 6.3% in January.

Economic Indicators

The January Purchasing Managers Index registered at 58.7%, down 1.8 points from the previous month. This indicates expansion in the overall economy for the eighth consecutive month, as a score above 50 represents expansion. 

The Architecture Billings Index declined to 42.6 for the month of December, indicating that more firms saw declining billings verse the previous month. Any score below 50 represents a decline.

Steel Industry News

On February 1, President Joe Biden reinstated the 10% aluminum tariff on imports from the United Arab Emirates. Former President Donald Trump had lifted the tariff on his last day in office. This reinstatement suggests that it is unlikely the Biden administration will remove the aluminum tariffs imposed by the previous administration. 

U.S. oil and gas drillers added rigs for the 11th consecutive week. The count of rigs in the U.S. was 392 for the week through February 5. Economists see oil and gas drillers to likely continue adding rigs as the economy recovers from the pandemic in 2021.

For more information, contact your local sales representative or view the February 2021 Market Insight Guide below.