U.S. Economy

U.S. employers added 209,000 jobs in June. This is cooled down from May, but still shows evidence of a durable economy. The unemployment rate fell from 3.7% to 3.6%.

The U.S. economy grew at a 2% annual pace from January through March as consumers spent at the fastest rate in nearly two years. This is, however, a deceleration from the 2.6% from October through December and the 3.2% growth from July through September. The economy has been slowed by increased interest rates.

Economic Indicators

The Architecture Billings Index registered at 51.0 in May, the highest rate it has been since September.

The June Purchasing Managers Index registered at 46%, 0.9 points lower than May’s reading. This figure indicates the seventh month of contraction after a 30-month period of expansion. A reading above 50 indicates expansion.

The Consumer Confidence Index increased to 109.7 in June, the highest level since January 2022.

Industry News

Indian Prime Minister Narendra Modi made a recent visit to the U.S. During his stay, the two nations agreed to resolve six long-standing disputes at the World Trade Organization. It was confirmed that India would remove the retaliatory tariffs it imposed in response to the U.S. Section 232 national security measures on steel and aluminum.

President Joe Biden assured that most of India’s imported steel and aluminum products would not suffer additional scrutiny.

For more information, view the July 2023 Market Insight Guide below.

U.S Economy

U.S. employers added 339,000 jobs in May. This is well above expectations and shows evidence of enduring strength in an economy the Fed Reserve is trying to cool.

As long as the U.S. economy continues the steady job growth we have been seeing over the last few months, the economy is not expected to slip into a recession.

Economic Indicators

Business conditions softened in April, as the Architecture Billings Index fell back to below 50, to 48.5. A score below 50 indicates a decline in firm billings.

The May Purchasing Managers Index also declined month-over-month to 46.9%, a 0.2 point decline from April.

Consumer Confidence for the month of May fell to 102.3, down from April’s reading of 103.7.

Industry News

The U.S. is seeing an oversupply in the pork industry and hog farmers are losing money at the worst rate in decades. However, the glut of pork in the market has yet to translate to lower prices for consumers.

The entire hog farming industry has been impacted, including farm expansion plans, new equipment orders, and larger renovations.

U.S. pork producers started expanding farms and processing plants in recent years as overseas demand boomed due to hog herds in China being devastated by an African swine-fever outbreak in 2018. However, export volumes fell 10% from last year as China began rebuilding it’s hog population.

China has also had delayed economic and industrial recovery due to COVID. This slow recovery has had an impact of global metal trade. China is the world’s heaviest user of copper and steel. As a result, the nation’s delayed recovery is wreaking havoc on global supply chains.