Steel Products
Flash PMI at Five Month High
Written by Sandy Williams
August 22, 2013
The Markit Flash U.S. Manufacturing PMI hit a five month high in August. The PMI registered 53.9 up from 53.7 in July indicating moderate growth in the manufacturing sector.
New orders increased in August attributed to better demand. Export orders continued to rise this month but softened from July levels. Production output rose slightly in August but at a slower pace than previously this year. Inventory levels dropped at the strongest pace since 2009.
Employment in the manufacturing sector rose due to increased workloads from higher production rates.
Input price inflation eased but input costs rose strongly on higher steel and packing prices. Selling prices rose as manufacturers passed higher input costs on to customers. Delivery times lengthened at the highest increase rate since April 2012.
Commenting on the flash PMI data, Chris Williamson, Chief Economist at Markit said:
“The U.S. manufacturing sector saw only modest growth of production in August, suggesting that the economy is continuing to recover in the third quarter but that the pace of expansion remains disappointingly sluggish.
Hopefully the faster growth of new orders seen during August will translate into increasingly strong production gains in coming months, and also boost hiring. Job creation was the strongest for four months in August, but the sector is still barely contributing to non-farm payroll growth.
Policymakers will be encouraged by the sustained recovery and signs of strengthening demand, which add further weight to the possibility of the Fed starting to taper its asset purchases as soon as September. However, the Fed will also be wary of how fragile growth both at home and abroad is looking, and will therefore be keen to ensure policy is not tightened too much too fast.”
The Purchasing Managers’ Index™ (PMI™) is a monthly composite index based on five indexes: New Orders, Output, Employment, Suppliers’ Delivery Times and Stocks of Items Purchased. An index reading above 50 indicates in an expansion in that index area. The Index is based on a survey of 600 manufacturing companies in the U.S. The Flash PMI is an advance indication of final PMI data based on 85%-90% of the total PMI surveys received.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
Data centers drive construction growth in April: Dodge
The index has fluctuated since reaching a record high in January to kickstart the year.
Asian HR still much cheaper than US and EU material
Domestic hot-rolled (HR) coil prices moved lower this week, now down six of the last seven weeks. Recent price erosion has been seen in offshore markets, keeping the price gap between imports and domestic products largely flat week on week (w/w).
Domestic steel shipments rise in March: AISI
US steel shipments increased both sequentially and on-year in March, according to the latest data from the American Iron and Steel Institute (AISI).
SMU Steel Summit 2025: It’s coming at you fast!
Before you know it, we’ll all be singing those famous words made popular by Alice Cooper back in ’79 – “school’s out for summer!” But it’s not “all the girls and boys making that noise,” it’s the growing buzz around SMU’s Steel Summit 2025! So, while August might seem like a long way off, we’ve […]
Rig counts trend lower in US and Canada
Oil and gas drilling activity eased in both the US and Canada this week, according to Baker Hughes. US rig counts remain near multi-year lows, and Canadian activity continues its seasonal slowdown.