The U.S. economy grew at a rate of 6.4% in the first three months of 2021. Economists believe this may be the strongest year for the economy in about seven decades. They also believe the growth this quarter will be enough to push GDP output above the previous peak reached at the end of 2019.
For the sixth straight month, the U.S. economy added back jobs. In June, the economy added back 850,000 payrolls as the unemployment rate ticked up to 5.9%. The biggest payroll gains were seen in the leisure and hospitality industries as more and more Americans get vaccinated and start to travel.
The June Purchasing Managers Index registered at 60.6%, a decrease of 0.6 points from May’s reading. However, this still indicates expansion in the overall economy for the 13th consecutive month, as any score above 50 indicates expansion.
The Architectural Billings Index for May scored 58.5, one of the highest scores ever recorded. A score above 50 indicates an increase in design billings.
Consumer Confidence improved in June with the index standing at 127.3, up from May’s revised reading of 120.0. The Present Situation Index also rose from the previous month to 157.7.
According to the International Institute, total global aluminum production rose to 5.74 million metric tons in May. This total marked the highest level and a rise of just 6% compared to this time last year. This resulted in a 588,000 ton deficit year-to-date compared to a 1 million ton + surplus reported last year.
However, rising global output alone could be enough to cap further aluminum price hikes this year as many of the major economies get close to pre-pandemic levels of consumption. This year’s primary metal deficit could reverse towards the end of the year.
For more information, contact your local sales rep or view the July 2021 Market Insight Guide below.Metalwest Market Insight - July 2021