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Market Update
The Gerdau Market Update tracks and analyzes over 100 data streams that affect long steel consumption, attempting to provide the latest on market trends. Below, you will find the most recent information about Macroeconomics, Steel Econometrics, Construction and Manufacturing as it becomes available.
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Advance Durable Goods Orders: The U.S. Census Bureau reported that new orders for durable goods in July 2024 was up 9.9%(m/m) to $289.6, following the 2.2% decrease in June. The always-volatile nondefense aircraft orders, down 34.4% y/y, influenced this trend significantly.
Producer Price Index: The U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) for final demand increased 0.1% in July 2024 (seasonally adjusted), after increasing 0.2% in June. The index for final demand goods increased 0.6% in July, the largest advance since February, while the index for final demand services fell 0.2% in July, the largest decrease since March 2023. Nearly 60 percent of the broad-based increase in July can be traced to the index for final demand energy, which moved up 1.9 percent.
Architectural Billings Index: July’s 2024 national Architectural Billings Index of 48.2 was up 1.8 points from June’s 46.4, which is below the expansionary zone, (>50). U.S. architecture firms specializing in Institutional and Commercial/Industrial all reported a decrease in design activity in July.
U.S. Manufacturing Capacity Utilization: Manufacturing capacity utilization (MCU) reached 77.17% in July 2024, -0.4% month on month (m/m). On a year on year (y/y) comparison, the MCU was a modest -1.1%.
ISM Non-Manufacturing Index: The Institute for Supply Management’s non-manufacturing index increased by 2.6 points month on month (+5.3% m/m) to 51.4 in July 2024.
ISM Manufacturing Index: The Institute for Supply Management’s manufacturing index moved down -1.7% (m/m) to 46.8 for July 2024; this value is weaker than the forecast of 50. The new orders sub-index scored at 47.4. It was the 20th decline in activity during the last 21 periods, underscoring the impact of high interest rates on goods demand, pressured by a fresh contraction in the level of new orders.