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.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/sandy-williams.jpeg)
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/10/CMC-New-Logo.png)
CMC to open rebar fabrication facility in Ohio
Longs producer and metal recycler CMC plans to open a new rebar fabrication plant in Akron, Ohio.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/steel_trade.png)
US and Mexico take action to curb ‘unfair’ trade
The US and Mexico announced measures on Wednesday to prevent tariff evasion and protect North America’s steel and aluminum industries.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/gears.png)
Final thoughts
First off, we hope everyone had a safe and happy July 4th holiday, with fireworks seen and BBQs attended. Many parts of the country are quite toasty at the moment, signaling that, yes, summer has indeed arrived. And looking at our most recent survey results, the summer doldrums have arrived as well.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/12/Rig_count_pic_3-scaled.jpg)
Active rig counts recover in US, slip in Canada
US drill rig activity moved back up last week after drifting lower for four straight weeks. Meanwhile, Canadian counts slipped for the first time after a seven-week rally, according to the latest data from Baker Hughes.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/AISI.png)
AISI: US steel shipments up in May from April, off from 2023
Domestic steel shipments increased in May month over month but have fallen on-year.