Economy

SMU's July At-a-Glance
Written by Brett Linton
August 4, 2020
Steel prices declined throughout the month of July, although mills announced price increases in the third week of the month. As of last week, Steel Market Update’s hot rolled price average had declined to $450 per ton. Scrap prices declined from June to July by $18-48 per ton. SMU adjusted its Price Momentum Indicator from Lower to Neutral in mid-July.
SMU Buyers Sentiment Index readings declined from July, with Current Sentiment remaining in positive territory but slipping to +34 at the end of the month. Future Sentiment ended the month at +38, while the three-month moving average reached +31.83 as of July 24, the highest 3MMA seen in 16 weeks. Note that monthly sentiment readings in the chart below are averages for each month.
Key indicators of steel demand were mostly up compared to the downturn seen in the prior months. The AIA Billings Index rose to 40.0, and private employment increased by nearly 4,800 jobs. Construction spending slightly decreased in July to $1,355 billion dollars (SAAR).
See the chart below for other key metrics in the month of July:

Brett Linton
Read more from Brett LintonLatest in Economy

Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).

Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)

Architecture billings continue to slide in March
Architecture firms said billings continued to decline in March, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.

Beige Book shows concerns about trade policy
Manufacturing was mixed, but two-thirds of districts said activity was little changed or had declined.

New York state manufacturing index drops again in April
Firms were pessimistic, with the future general business conditions index falling to its second lowest reading in the more than 20-year history of the survey