CRU Aluminum: Reframing the Demand Picture

Economic conditions are still iffy at best. Housing data continues to suffer with new home sales plunging and inventory reaching the highest it has been since 2009. The Richmond and Kansas City Fed manufacturing indexes both plunged in July as well. The Richmond Fed’s manufacturing skill availability index, which indicates the demand for skilled labor in relation to supply, has risen to 0, or neutral, which signals a switch from expansion to contraction. However, not all is negative as CPI projections have built off last month’s report and are expected to continue to fall, albeit slowly. The Philadelphia Fed manufacturing index reported a surprise jump and, despite the struggles in housing, prices have steadied after the sharp drop seen last month. Durable goods orders have also remained steady month-on-month.