Metal Shipments Increased At Slower Rates Compared To The First Half Of 2021
- MSCI reported that metal shipments from U.S. and Canadian service centers increased at slower rates in July 2021. According to MSCI’s Metals Activity Report, U.S. service center steel shipments increased 7.1 percent from July 2020 to July 2021 while shipments of aluminum products rose 12.3 percent. Canadian service center steel shipments fell 2.8 percent year-over-year while shipments of aluminum products rose 22.1 percent.
- According to the U.S. Bureau of Economic Analysis, the nation’s economy increased at an annual rate of 6.6 percent in the second quarter of 2021, up from the 6.5 percent growth rate the BEA initially reported for the second quarter and up from 6.3 percent growth rate in the first quarter. The Conference Board’s Leading Economic Index indicated that U.S. growth would continue apace in the coming months. That reading increased by 0.9 percent in July to 116.0, following a 0.5 percent increase in June and a 1.2 percent increase in May. The Federal Reserve Bank of Chicago’s National Activity Index, another key gauge of future growth, also improved in July.
- U.S. industrial production expanded 0.9 percent in July as manufacturing output rose 1.4 percent. About half of the gain in factory output was attributable to a jump of 11.2 percent for motor vehicles and parts. The output of utilities decreased 2.1 percent in July while the index for mining rose 1.2 percent. Read the Federal Reserve’s full report here.
- Manufacturing sales in Canada increased 2.1 percent to $59.2 billion in June. Sales were up in 13 of the 21 industries tracked and were led by a 25.6 percent increase in motor vehicle sales. Read the full report here.
- Regional Federal Reserve banks reported that the manufacturing industries in their respective areas weakened somewhat in August. The Federal Reserve Bank of Richmond reported that its composite index declined from +27 in July to +9 as indicators for shipments, new orders, and employment fell. Additionally, several manufacturers reported deteriorating local business conditions and noted that lead times continued to increase and inventories remained low. In contrast, the Federal Reserve Bank of Kansas City said its month-over-month composite index was +29 in August, similar to its +30 level from July, and up slightly from +27 in June. The rate of expansion slowed in the New York region, but was still strong. In the Philadelphia region, 28 percent of the firms reported increases in current activity this month while just nine percent reported decreases.
- During the week that ended August 21, 353,000 Americans filed for federal unemployment benefits for the first time, an increase of 4,000 from the previous week’s level. The four-week moving average was 366,500, a decrease of 11,500 from the previous week’s average. This is the lowest level for this average since March 14, 2020 when it was 225,500.
- Canadian retail sales rose 4.2 percent to $56.2 billion in June, led by higher sales at clothing and clothing accessories stores. Sales increased in eight of 11 subsectors, representing 69.5 percent of retail trade. Read the full report here.
- In other economic news: the number of new homes under construction in the United States fell seven percent between June 2021 and July 2021, but increased 2.5 percent between July 2020 and July 2021; new homes sales in the United States increased one percent in July, but fell 27.2 percent year-over-year; Canada’s industrial producer price index declined 0.4 percent from June to July, but rose 15.4 percent year-over-year; and the core consumer price index in Canada increased 1.7 percent between July 2020 and July 2021.