Producer Price Index: The U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) for final demand fell 0.5% in July 2022 (seasonally adjusted), following the 1.0% increase in June. The index for final demand goods fell 1.8% in July, while the index for final demand services grew 0.1% after a 0.3% increase in June. Eighty percent of the July decline in the index for final demand goods is attributable to gasoline prices, which fell 16.7 percent.

Currency Report: The trade-weighted U.S. Broad Dollar Index posted a reading of 122.821 in July, up 2.21% m/m, steadily increasing the last five months. This index value is up 8.60% on a year on year (y/y) basis.

Crude Oil & Natural Gas Pricing: July’s average West Texas Intermediate (WTI) crude oil price per barrel decreased 12% month on month (m/m). The WTI is up 40% year on year (y/y), coming in at $101.62 / barrel in July 2022 vs. $72.49 / barrel in July 2021.

Oil and Gas Rotary Rig Counts: The total number of operating rigs in Canada for the week ending July 29th was 137 oil and 67 gas (totaling 204). In percentage terms, on a month on month (m/m) basis, oil rigs were up 52.7% and gas up 17.5%. On a year on year (y/y) comparison, rigs were up 47.3% for oil and up 13.6% for gas. The combined figure for y/y was +33.3% or 51 rigs.

Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending July 29th was 605 oil and 157 gas (totaling 762). In percentage terms, on a month on month (m/m) basis, oil rigs were up 1.7% and gas was up 2.6%. On a year on year (y/y) comparison, rigs were up 57.1% for oil and up 52.4% for gas. The combined figure for y/y was +57.2%, or +279 rigs.

Employment by Industry (U.S.): In July 2022, the total number of seasonally adjusted (SA), non-farm people employed in the U.S. was 153 million (M) – an increase of 528,000 (+0.3%) month on month (m/m). When compared to July 2021, total employment is up by 4.2% year on year (y/y). Among the employment sectors that we track at Gerdau, we saw the greatest monthly gain in the oil and gas extraction sector with a growth of 1.6% m/m.