1. Inflation data is released this week as we get the Producer Price Index on Wednesday and the Consumer Price Index on Thursday.  It will be important to see if the constant increase of prices paid by producers has finally been pushed through to the consumer.
2. Wednesday also brings August’s retail sales data.  After increasing in July, the consensus is for a relatively flat August reading.  A strong retail sales report will go a long way in determining the state of the consumer.
3. On Thursday we get two reports: The NY Fed Empire Manufacturing Survey and the Philadelphia Fed Manufacturing Survey.  After both reports have seen erosion recently, any positive movement will be good news for manufacturing and in turn, steel demand.
4. On Friday, the Reuters/University of Michigan preliminary Consumer Sentiment report for September is out.  After declining in August to one of the lowest readings in three years, a positive bump will be very important.

With the recent monthly employment situation disappointing again and the weekly initial jobless claims report continuing to be weak, President Obama unleashed his American Jobs Act last night in an attempt to stimulate job growth in the United States.  His plan called for a combined $447 billion in spending and tax cuts in order to catalyze job creation in the currently nonexistent jobs market.

One of the main objectives of his speech was to boost construction and manufacturing jobs by increasing school and airport renovation projects.  President Obama mentioned America’s feeble infrastructure system as another area of focus.  As the nation concentrates on these main areas, it could mean a boost for steel demand in the near future.

Other points of interest he covered were tax breaks for small business as well as incentives for business who hire new employees or raise employee wages. The act would continue 2011’s tax write-off for business owners who invest in their businesses, such as adding plants or equipment.  These tax incentives would increase for companies who hire people out of work for more than six months or United States veterans.

Whether any or all of the act will be passed into law is anyone’s guess, but the thought of a stimulus directed toward the steel industry would be a welcomed sight for many construction and manufacturing business who are struggling to get by.

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The days of scanning the newspaper or having to pick up the phone to gain information are long behind us, and the up-to-the-second world of Twitter, Facebook, LinkedIn and other social platforms have made gaining information an easy process. Social media is growing in popularity and offers opportunities for small businesses and Fortune 500 companies alike.

As Coil World wrote in its July/August 2011 issue, Majestic has developed an industry-leading social media strategy as a way to share immediate information about the company, the steel industry and the market as a whole. In addition to the (C)ORE Blog, Majestic has developed several Twitter accounts, including @SteelResearch, @MajesticSteel, and @MajesticatHARDI, as well as accounts on Facebook and LinkedIn. 

Here at Majestic, we have committed to investing in social media for both its immediate benefits and the long-term value it brings. More than just a passing trend, social media is indicative of the increasingly interactive nature of news in the 21st century. Here are a few ways regular social media usage can make you a smarter steel buyer:

1. A bird’s-eye view

Twitter is a micro-blogging site, meaning that users have 140 characters to express a thought. The result? Concise, headline-like posts that get to the point and are easy to skim. Quickly scroll through your Twitter feed each morning to get a sense for what’s going on in the world and in the marketplace.

2. The long and short of it

Links are easily and often shared via social media. By selecting which individuals and companies you’ll follow on Facebook, Twitter and LinkedIn, you can create your own custom news aggregator where you can easily click to learn more about articles that interest you.

3. Ask questions, get answers

Social media is, above all, social and thrives on interaction. It’s the perfect medium to pose a question on where the market is headed or ask @SteelResearch to further explain the latest blog post.

With all this information at your fingertips, it’s much easier to make well-informed purchasing decisions even in a volatile market. If you want to learn more on how you can use social media, here are a few resources from Mashable:
- A very comprehensive guide to Twitter for the novice to the expert.
- A step-by-step guide to setting up a Facebook page for your business
- How to build your company’s profile on LinkedIn

Do you utilize social media? How? I would be happy to answer any questions you may have.

We were glad to hear that our customers along the east coast only experienced limited flooding and were otherwise unscathed by the recent hurricane.  Now that Hurricane Irene has made her appearance, complete with bells and whistles, the unenviable task of surveying the damage and planning for rebuilding has begun.

Initial reports from multiple insurance agencies say that they have received over 10,000 homeowner’s claims and more than 3,000 auto insurance claims.  On top of the damage to homes and automobiles, Irene’s wrath uncovered an old and weakening infrastructure system that was more than overdue for repairs.

While the total damage was well below what was initially expected, reports had total damage at more than $1 billion, making this the 10th US disaster this year to total over $1 billion in damage.  And as fires continue spread in Texas, this number might be pushed to 11.

While the impact on steel is minimal, there still is rebuilding of roads and bridges and replacing destroyed homes and autos to be done, which in turn could possibly help boost jobs and demand along the east coast.

The Year of the Disaster has been fierce so far and we are only entering September; hopefully we will not see any more in the near future but if there is, the need for steel will continue to bolster demand.

Was your business in the path of Hurricane Irene? Do you think this disaster will help or hurt the economy? The steel industry?

Note: We at Majestic Steel are continuing to follow up with our customers along the east coast. If you or your business are in need of assistance, please contact me at core@majesticsteel.com or your account manager.

No matter what the industry, whether private, public or government, the first Friday of each month draws everyone’s attention to one thing: The employment situation report.  That was more true than ever this morning as it seemed everyone was strongly focused on the report in order to further gauge the strength of the economy.

Unfortunately, the August employment situation report was not a strong one as it showed the US added zero jobs, well below expectations of a 75,000 increase.  To throw salt in the wound, the previous two reports were revised lower.

The unemployment rate remained flat (and very elevated) at 9.1%.  The silver lining?  More people joined the workforce, but the unemployment level did not change.  Take it for what it’s worth, because positive news was hard to find.
 
Some of the negative pressure on jobs in August can be directly related to the Verizon strike that reportedly took as many as 45,000 jobs out of the economy.  This has since been resolved, so we should hopefully see some improvements in September’s report.

As the job market remains stuck, is it possible that this negative jobs report could actually be a positive for the overall economy?  With such a negative report the pressure continues to mount on the Fed to react and to do their part in order to spark the economy, possibly with a QE3. 

So for now the economy continues to remain in a rut, especially when it comes to job growth.  But maybe this negative report is what it is going to take to urge the Fed into doing something, which in turn can get the economy churning once again.

The August National ISM Manufacturing Index report, out this morning, was a small spark of economic positivity; albeit small, it was still a spark.

After most analysts predicted the index would slide below 50, the benchmark for growth, the index was relatively flat, sliding to 50.6 from 50.9 in July.  The index has now been on the positive side of 50 for 25 consecutive months.
 
Ten of the 18 manufacturing industries reported growth in August; included in this group were Fabricated Metal Products and Transportation Equipment, both highly steel intensive.  Primary metals, however, were one of the six industries reporting declines.

As for the report, the New Orders subindex, while still contracting, has started to turn and is now contracting at a slower rate.  Although employment growth slowed, it is still growing and remains one of the strongest subindices of the report.

The biggest boost to the report was a strong build in inventories, climbing to 52.3 after falling below 50 to 49.3 in July.  Along with Employment and Inventories, Prices, Imports and Exports continue to grow.

After many feared the worst for manufacturing in the U.S., the industry continues to hang on and fight with a resilience characteristic of this great country.