Over the past few months, Steel Market Update has been watching the Empire State Manufacturing Index (New York Federal Reserve Bank) and how it compares with our SMU Steel Buyers Sentiment Index.

In the graph below we have highlighted various peaks and troughs of both indexes and then compared them to one another. To be “apples to apples” we have applied our mid-month reading against the Empire State Mfg. Index which is released during the middle of the reporting month.

Looking at the most recent peak of the cycle Steel Market Update “Sentiment Index” peaked in mid-March/early April time frame and has subsequently been retreating ever since. The Empire State Manufacturing Index peaked in mid-April and has been declining ever since as well.