United States And Canada Both Post Strong Trade Numbers

Connecting the Dots monitors all major economic announcements in the United States and Canada, but the Metals Service Center Institute (MSCI) also offers industrial metals industry-specific data products that provide much deeper analysis and insight.

Visit MSCI’s website and click on industry data to learn more about our Metals Activity Report (MAR), Momentum Monitors, and Economic Pulse.

Meanwhile, here are the major economic headlines from the last week:

• According to MSCI’s MAR, metals activity in July 2024 indicated steel and aluminum shipments have reversed recent trends. Specifically, U.S. service center steel shipments increased 6.3 percent from July 2023 to July 2024 while shipments of aluminum products advanced 0.5 percent. Canadian service center steel shipments fell 0.4 percent between July 2023 and July 2024, but aluminum shipments increased 3.7 percent.
• The U.S. goods and services trade deficit was $73.1 billion in June, down $1.9 billion from May. The decline reflected a reduction in the goods deficit of $2.5 billion to $97.4 billion and a drop in the services surplus to $24.2 billion. Year-to-date, the goods and services deficit rose $22.7 billion, or 5.6 percent, from the same period in 2023. Exports were up $58 billion, or 3.8 percent, while imports increased $80.7 billion, or 4.2 percent. Read the full report here.
• After three months of deficits, the Canadian economy posted a trade surplus in June due to a boost in exports tied to the expansion of the Trans Mountain pipeline. Statistics Canada said the merchandise-goods trade surplus with the rest of the world totaled C$638 million versus a C$1.61 billion deficit in May. Exports rose 5.5 percent in June while imports were up 1.9 percent.
• U.S. industrial production fell 0.6 percent in July. Shutdowns early last month due to Hurricane Beryl and concentrated in petrochemical and related industries held down industrial production growth by an estimated 0.3 percentage points. Manufacturing output fell 0.3 percent because the index for motor vehicles and parts fell nearly eight percent. The index for mining was relatively steady and the index for utilities decreased 3.7 percent. Read the full report from the Federal Reserve at this link.
• The Canadian economy lost a net 2,800 jobs in July. Gains in full-time work were offset by part-time job losses. Employment fell in the wholesale and retail trade, finance, insurance, real estate, and rental and leasing sector. Employment increased the in the public administration, transportation and warehousing, and utilities industries. The country’s unemployment rate, meanwhile, was unchanged at 6.4 percent.
• Regional manufacturing readings have continued to show industry deterioration this month. According to the Federal Reserve Bank of New York, manufacturing activity in its region slowed. The bank’s headline general business conditions index was relatively stable at -4.7, but inventories and new orders declined. Shipments held steady and employment also continued to contract. Read the full report at this link. The Federal Reserve Bank of Philadelphia said manufacturing activity in its region declined in August. The bank’s manufacturing index fell to -7.0 from +13.9 in July, marking its first negative reading since January. New orders, shipments, and employment all declined. Read the full report at this link.
• According to Statistics Canada, manufacturing sales fell 2.1 percent in June due mostly to declines in sales from the transportation equipment (down 2.9 percent), chemical product (down 5.8 percent), and primary metal subsectors (down 2.7 percent). Overall, sales were down in 17 of the 21 subsectors. Meanwhile, U. S. manufacturing sales fell 0.1 percent between May 2024 and June 2024, but increased 2.2 percent from June 2023 to June 2024. Inventories were up 0.3 percent for the month and 2.1 percent year-over-year. The total business inventories-to-sales ratio in June 2024 was 1.38, the same as a year before.
• Statistics Canada announced that the country’s wholesale sales, excluding petroleum, petroleum products, other hydrocarbons, oilseed, and grain, fell 0.6 percent to $82.4 billion in June. Overall, sales declined in five of the seven subsectors, including in the motor vehicle and motor vehicle parts and accessories subsector where sales fell 2.6 percent. Additionally, the machinery, equipment, and supplies subsector dropped 0.5 percent to $17.9 billion.
• The prices of goods imported into the United States rose 0.1 percent from June 2024 to July 2024 and 1.6 percent from July 2023 to July 2024. Export prices were up 0.7 percent for the month.
• The number of people who applied for U.S unemployment benefits for the first time stood at 227,000 during the week that ended Aug. 10, a figure that was down by 7,000 from the week before. Averaged over the past four weeks, first-time claims fell 236,500. In all, nearly 1.864 million people claimed jobless benefits during the week that ended Aug. 3.
• In other economic news: the number of new homes under construction in the United States was down 6.8 percent between June 2024 and July 2024 and also declined by 16 percent between July 2023 and July 2024; the U.S Producer Price Index  increased 0.1 percent between June and July and 2.2 percent year-over-year; the U.S. Consumer Price Index was up 0.2 percent between June and July and 2.9 percent year-over-year; and real average hourly earnings for all U.S. employees increased 0.1 percent from June to July and 0.7 percent year-over-year.