Steel Products
European Economy on Slow Path to Recovery
Written by Sandy Williams
August 23, 2013
The European economy finally seems to be on the road to recovery. In figures released by the European Commission, GDP in the second quarter rose by 0.3 percent in the Eurozone—a small but positive indicator of growth.
The growth was led by Germany and France where GDP improved by 0.7 percent and 0.5 percent, respectively. Positive signs are also seen in countries in southern Europe that are most deeply entrenched in recession. Decline is slowing in Italy, Greece and Spain. Portugal pulled out of its downward trend and posted a 1.1 percent improvement in its GDP.
Thursday’s release of the Markit Flash Eurozone PMI showed the largest monthly increase in business activity for August recorded in two years. The Composite PM rose for the fifth consecutive month to 51.7 from 50.5 in July.
New orders were up slightly indicating the first improvement in demand for goods and services since July 2011. Orders for manufactured goods were up along with export sales. Employment declines slowed in August.
Input costs rose due to higher oil and fuel prices while output prices fell due to discounting by companies to boost sales.
“The euro area’s economic recovery gained momentum in August, with manufacturing and service sector companies reporting the strongest pace of expansion for just over two years,” said Chris Williamson, Chief Economist at Markit. “So far, the third quarter is shaping up to be the best that the euro area has seen in terms of business growth since the spring of 2011. The economic picture from the surveys is therefore coming into line with policymakers‟ expectations of a modest yet still fragile return to growth.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
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.
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.
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.
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.
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.