US manufacturing activity, a leading demand indicator for manufacturers of fabricated metal products, grew in June 2016 for the fourth consecutive month, according to the Institute for Supply Management. Among 18 manufacturing industries tracked by the institute, 13 reported expansions in June, including fabricated metal products. Other industries of importance to metal fabrication product manufacturers also reported growth in June, including petroleum and coal products; food, beverage, and tobacco products; and machinery. However, transportation equipment manufacturers, a major demand driver for fabricated metal products, reported a contraction in activity in June. Overall, manufacturers generally reported faster growth in production and new orders in June, and employment gained ground over the prior month.
US industrial production, a demand indicator for metal coating, engraving, and heat treating services, fell 0.5% in July 2016 compared the same month in 2015. Production by providers of metal coating, engraving, and heat treating services fell more than 2%. Although industrial production dropped in July on a year-over-year basis, it saw monthly gains in June and July. The growth in June and July, along with a weaker US dollar and higher oil prices, could signal that the US manufacturing sector is poised for more robust growth, according to The Wall Street Journal.
Industry Indicators
- US durable goods manufacturers’ shipments of fabricated metal products, an indicator of fabricated metal parts production, rose 1.1% year-to-date in August 2016 compared to the same period in 2015.
- US steel mill product prices, an indicator of commodity steel costs for fabricated metal products manufacturers, rose 1.1% in September 2016 compared to the same month in 2015.
Posted by Bob Contaldo.
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