Global Crude Steel Production Fell Between March And April

• Global crude steel production fell to 169.5 million metric tons in April 2021, down slightly from March when production had reached 170.1 million metric tons. Output was up 23.3 percent from April 2020 to April 2021. Production increased in China from March 2021 to April 2021 and was up 13.4 percent year-over-year. Read more here.
• According to Statistics Canada, real gross domestic product (GDP) grew 1.1 percent in March, following 0.4 percent growth in February. This 11th consecutive monthly increase continued to offset the steepest drops in Canadian economic activity on record observed in March and April 2020, but total activity still was about one percent below its February 2020 level.
• Factory orders in the United States fell 0.6 percent to $485.2 billion in May while shipments increased 0.4 percent to $487.8 billion. Unfilled orders increased 0.2 percent while the unfilled orders-to-shipments ratio was 6.84, down from 7.0 in March. Read the full report here.
• The U.S. economy added 559,000 jobs in May and the unemployment rate fell to a pandemic-low of 5.9 percent. Manufacturers added 23,000 jobs. The percentage of working-age adults who are employed or actively seeking jobs was largely unchanged at 61.6 percent. It is 1.7 percentage points below its February 2020 level. Average hourly earnings rose 0.5 percent with wage growth hitting two percent after falling sharply during the pandemic. In related news: nonfarm business sector labor productivity rose 5.4 percent in the first quarter of 2021. Output increased 8.6 percent and hours worked rose by three percent. In related news: the number of Americans who filed for federal unemployment benefits for the first time fell to 385,000 for the week that ended May 29, marking the lowest total number of claims since March 14, 2020.
• The Canadian economy, meanwhile, lost 68,000 jobs in May as COVID-19 lockdowns continued. It was the second straight monthly jobs decline in a row. The nations’ unemployment rate was 8.2 percent in May, little changed from the 8.1 percent in April.
• The Institute for Supply Management (ISM) has forecasted solid manufacturing industry growth for 2021. ISM said expectations have strengthened due to rising hopes that the United States has turned the corner on the COVID-19 pandemic. Additionally, 59 percent of ISM survey respondents say that 2021 revenues will increase from 2020. The average expected gain was 13.8 percent. Meanwhile, ISM’s May purchasing manufacturers’ index rose to 61.2 percent in May, an increase of 0.5 percentage point from the April reading of 60.7 percent. Read the full report here.
• The Federal Reserve Bank of Richmond’s manufacturing index rose from +17 in April to +18 in May, as all three component indexes (shipments, new orders, and employment) indicated new growth. Read the full report here. Meanwhile, the Federal Reserve Bank of Kansas City’s manufacturing reading for the Midwest fell from +31 in April to +18 in May. While that composite reading declined, it still indicated strength in the sector. Indeed, the bank said growth “was driven higher by increased activity at durable goods plants, especially for primary and fabricated metals, machinery, furniture, and transportation equipment manufacturing.” Read the full report here.  Finally, Texas factory activity expanded but at a slower pace in May. The production index, a key measure of state manufacturing conditions, fell 18 points to 15.7, a reading still well above average and indicative of healthy output growth. Read the Federal Reserve Bank of Dallas’ report here.

In other economic news:

• The Chicago Federal Reserve Bank’s National Activity Index, a key gauge of future growth, was +0.24 in April, down from +1.71 in March;
• U.S. construction spending rose 0.2 percent from March 2021 to April 2021 and 9.8 percent between April 2020 and April 2021;
• Vehicle sales in Canada increased 36 percent between May 2020 and May 2021;
• The Conference Board’s consumer confidence index was 117.2 in May, down marginally from 117.5 in April; new home sales in the United States fell 5.9 percent between March 2021 and April 2021, but were up 48.3 percent from April 2020 to April 2021; and
• Personal incomes in the United States declined in April while personal consumption increased slightly.