Sheet Metal

June 2021 Market Insight

Economic News

On Wednesday, the Federal Reserve’s Beige Book, a compilation of anecdotal evidence on economic conditions, said the U.S. economy increased at a somewhat faster rate from early April to late May. However, it still described the pace of economic growth as moderate. The Fed said expanded vaccination rates had the most notable effects in consumer spending, as increased travel and restaurant spending supplemented ongoing strength in other categories.

The U.S. economy added 559,000 jobs in May, double April’s disappointing total, but still lower than the estimated 675,000. The unemployment rate decreased to 5.8%, from 6.1% last month.

Economic Indicators

The May Purchasing Managers Index registered at 61.2%, up 0.5 points from April. This indicates expansion in the overall economy for the 12th consecutive month (a score above 50 indicates expansion). The New Orders Index registered at 67%, up from the April reading of 64.3%. The Production Index registered at 58.5%, down 4 points from the previous month.

The Architectural Billings Index registered at 57.9 for April. This is the highest score since prior to the Great Recession, indicating that a majority of architecture firms saw their billings increase.

Consumer confidence held steady in May with the Consumer Confidence Index registering at 117.2, down marginally from April.

Industry News

U.S. businesses are calling on President Biden to drop the 25% import duties, arguing that for some products, U.S. businesses are paying 40% more for similar steel compared to European counterparts. Europe is hopeful the Biden administration will relax the 25% tariffs on European steel. However, according to MetalMiner’s Stuart Burns, the tariffs probably aren’t going away anytime soon.

We are excited to announce the creation of NIM Group, the new parent organization for each of our brands, Norfolk Iron, Metalwest, and Cd’A Metals. You can read more about it here.

For more information, check out the June 2021 Market Insight Guide below or contact your local sales rep.

Cd'A Metals Market Insight June 2021
Sheet Metal

May 2021 Insight Guide: Market Indicators

Economic News

The initial reading of the U.S.’s first-quarter economy performance showed that we are still far from normal. However, with more vaccines delivered and business restrictions easing, consumers are feeling more confident about the outlook and are starting to spend more freely. Gross domestic product grew by 1.6% in the first quarter of 2021. Economists predict that total economic output should return to prepandemic levels by summer.

In the way of job growth, however, the U.S. economy only gained 266,000 jobs in April. This is down significantly from widespread forecasts of 1 million plus jobs. The unemployment rate rose from 6% to 6.1%, contrary to expectations. Yet, still down from the historic peak of 14.8% last April when it was the highest since the Great Depression.

Economic Indicators

The April Purchasing Managers Index registered at 60.7%, down 4 points from March. The figure still indicates overall economic growth, however, as a score above 50 reflects expansion. The New Orders Index registered at 64.3% in April, declining 3.7 points from the previous month. The Production Index was at 62.5%, down 5.6 points from March.

Architecture firms continued to see strong business conditions in March as the Architecture Billings Index registered at 55.6 for the month. A score above 50 indicates an increase in firm billings.

The Consumer Confidence Index rose sharply again in April, now standing at 121.7, up from 109 in March.

Industry News

Construction spending rose in March to a seasonally adjusted annual rate of $1513.1 billion. This is a 0.2% increase from the previous month and a 5.2% increase from February 2020. Construction spending for the first quarter rose 4.5% year over year.

Pending home sales picked up after two straight months of declines, rising 1.9% in March. This is indicative of high housing demand.

Stainless steel output is rebounding strongly since the second half of last year. However, supply continues to be an issue for nickel. It is predicted the market will remain in surplus the rest of the year.

For more information, check out the Metalwest Market Insight Guide below or contact your local sales rep.

Cd'A Metals Market Insight May 2021