Currency Report: The trade-weighted U.S. Broad Dollar Index posted a reading of 120.379 in August, up 1.51% m/m, reversing trend after steadily decreasing for two months. This index value is down 1.67% on a year on year (y/y) basis. Month over month, we saw the Euro strengthen vs. the USD in August.

Employment by Industry (U.S.): In August 2023, the total number of seasonally adjusted (SA), non-farm people employed in the U.S. was 156.4 million (M) – an increase of 187,000 (+0.1%) month on month (m/m). When compared to August 2022, total employment is up by 2.0% year on year (y/y). Among the employment sectors that we track at Gerdau, we saw the greatest monthly gain in the heavy and civil engineering construction sector with a growth of 0.6% m/m.

Advance Durable Goods Orders: The U.S. Census Bureau reported that new orders for durable goods in July 2023 decreased 5.2% (m/m) to $285.9, following the 4.4% increase in June. The always-volatile nondefense aircraft orders, up 31.9% y/y, influenced this trend significantly.

Employment by Industry (U.S.): In July 2023, the total number of seasonally adjusted (SA), non-farm people employed in the U.S. was 156.3 million (M) – an increase of 187,000 (+0.1%) month on month (m/m). When compared to July 2022, total employment is up by 2.2% year on year (y/y). Among the employment sectors that we track at Gerdau, we saw the greatest monthly gain in the transportation equipment sector with a growth of 0.3% m/m.

Crude Oil & Natural Gas Pricing: July’s average West Texas Intermediate (WTI) crude oil price per barrel increased 8% month on month (m/m). The WTI is down 25% year on year (y/y), coming in at $76.07 / barrel in July 2023 vs. $101.62 / barrel in July 2022.

Producer Price Index: The U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) for final demand increased 0.3% in July 2023 (seasonally adjusted), after remaining flat in June. The index for final demand goods edged up 0.1% in July, after no change in June, while the index for final demand services increased 0.5%, the largest rise since August 2022. Forty percent of the July advance in the index for final demand services can be traced to a 7.6-percent rise in prices for portfolio management.