According to the Metal Industry Indicators report released by the US Geological Survey (USGS), the US economic recovery has supported domestic primary metals industry activity with modest metals demand from the manufacturing and construction sectors. However, slower global economic growth has reduced demand for US metals. The steel leading index for the US remained stable in November last year, the latest month for which it is available, at 109.9. Its six-month smoothed growth rate remained at October's -1 percent.
The highest light truck and car sales in five years and a jump in the index for new housing permits exerted a positive impact on the steel leading index. In contrast, the dips in the steel scrap price growth rate made a negative contribution to the leading index. The USGS report points out that the steel leading index growth rate has generally moved higher since August, but it still suggests that US steel industry activity could slow in the near term.
Note: Composite coincident indexes for the metal industries consist of indicators for production, shipments, and total employee hours worked. A growth rate above +1.0 percent is usually a sign of an upward near-term trend for future metals activity, while a growth rate below -1.0 percent indicates a downward trend.
