Demand for durable goods has only continued to grow, now up in seven of the last eight months, increasing 0.7% from April at a $267.2 billion rate. New orders for primary metals has increased sharply, climbing 3.1% to a $21.6 billion rate. Additionally, unfilled new orders for all manufactured durable goods continued to climb, now up for the twenty-first consecutive month.
U.S. light vehicle production totaled 849,147 units in May, up a significant 8.9% from April, and 21.9% from this time last year. This marks production increases in four of the last five months.
The 12-month increase for energy prices came in at 34.6%, the largest increase since September 2005. Additionally, oil is now hovering over $120 a barrel with the average diesel price of $5.73 a gallon, and gasoline price of $5.01 a gallon, both setting all-time highs.
The Dodge Momentum Index (DMI), the report for nonresidential building projects, jumped 7% in May to 176.2, up from the revised April reading of 165.2. Commercial planning is being driven by an increase in office and hotel projects. The DMI has now surpassed the previous high reached November 2021.
Coming in at a $1.745 trillion rate in April, total construction spending hit a fresh all-time high. Residential projects are driving total spending as it continues to climb, now accounting for 51.6%, it’s highest percentage since mid-2006.
Domestic raw steel production climbed for the third consecutive week, but is still down 1.8% compared to the same timeframe last year. At the same time, after increasing in March, preliminary carbon steel imports for April saw the start, of what is anticipated to be, a decent pull back in carbon steel imports.
In the last few months we’ve experienced major fluctuations in input costs and availability due to Russia’s invasion of Ukraine, skyrocketing energy prices in Europe, and suppressed production in China due to their zero COVID policy. Domestically, we’ve faced rapid inflation, large interest rate hikes, and record high gas and diesel prices. After more than 2 years of market swings, volatility has become the new normal.
The April consumer price index came in at 289.1, up 8.26% from last April. Although this is still elevated, it is lower than March’s all-time high of an 8.54% year-over-year increase. Airline fares saw the largest 1-month increase in history. Prices also continued to rise for housing, lodging away from home, and new vehicles. There were a few components that saw slight declines in pricing including apparel, communication, and used vehicles.
The April consumer price index came in at 289.1, up 8.26% from last April. Although this is still elevated, it is lower than March’s all-time high of an 8.54% year-over-year increase. Airline fares saw the largest 1-month increase in history. Prices also continued to rise for housing, lodging away from home, and new vehicles. There were a few components that saw slight declines in pricing including apparel, communication, and used vehicles.
Import and domestic supply tightens straining an already fragile steel market.
