The Federal Reserve hinted they would cut interest rates if the U.S. trade war threatens the decade-long expansion at a summit this week. The U.S. economy will mark 10 years of expansion in July, the longest on record. However, rising trade tensions between the U.S. and China have put a chill on U.S. businesses’ spending and caused a manufacturing slowdown.
Only 75,000 jobs were added in May amid President Trump’s ongoing trade wars. The unemployment rate held steady at 3.6%. This could signal signs that the Federal Reserve will increase rate cuts.
The Architecture Billings Index registered at 50.5 in April, a 2.7-point increase from last month. Any score above 50 indicates an increase in billings.
The May Purchasing Managers Index registered at 52.1%, a decrease of 0.7 points from the previous month. The New Orders Index registered at 52.7%, up 1 point from April. The Production Index registered at 51.3, down 1 point from the previous month.
Hot-rolled coil prices have begun to signal a steel market downturn, with prices reflecting trends not seen since the 2008 global financial crisis. Prices in the U.S. have been falling fast.
Executives at U.S. steelmakers are pushing back against Trump’s abrupt announcement he intends to slap tariffs on Mexican imports, fearing it will cause a stalemate to the new North American free-trade deal. However, Senator Kevin Cramer, a North Dakota Republican, predicted that the Senate would have enough votes to override a presidential veto and keep Trump’s tariffs from going into effect on June 10.
For more information, contact your local sales rep or view the June 2019 Metalwest Market Insight below.Metalwest Market Insight - June 2019