Employment by Industry (U.S.): In June 2023, the total number of seasonally adjusted (SA), non-farm people employed in the U.S. was 156.2 million (M) – an increase of 209,000 (+0.1%) month on month (m/m). When compared to June 2022, total employment is up by 2.5% 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 0.7% m/m.

Oil and Gas Rotary Rig Counts: The total number of operating rigs in Canada for the week ending June 30th was 109 oil and 58 gas (totaling 167). In percentage terms, on a month on month (m/m) basis, oil rigs were up 113.7% and gas up 26.1%. On a year on year (y/y) comparison, rigs were flat for oil and up 1.8% for gas. The combined figure for y/y was +0.6% or +1 rigs.

Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending June 30th was 545 oil and 124 gas (totaling 669). In percentage terms, on a month on month (m/m) basis, oil rigs were down 1.8% and gas was down 9.5%. On a year on year (y/y) comparison, rigs were down 8.4% for oil and down 19.0% for gas. The combined figure for y/y was -10.1%, or -76 rigs.

Currency Report: The trade-weighted U.S. Broad Dollar Index posted a reading of 119.710 in June, down 0.12% m/m, reversing trend after increasing last month. This index value is down 0.38% on a year on year (y/y) basis. Month over month, we saw the Brazilian real, the Canadian dollar, the Euro, the Indian rupee, the Mexican peso, and the South Korean won strengthen vs. the USD in June.

Advance Durable Goods Orders: The U.S. Census Bureau reported that new orders for durable goods in May 2023 increased 1.7% (m/m) to $288.1M, following the 1.2% increase in April. The always-volatile nondefense aircraft orders, up 1.9% y/y, influenced this trend significantly.

Producer Price Index: The U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) for final demand decreased 0.3% in May 2023 (seasonally adjusted), following the 0.2% increase in April. The index for final demand goods fell 1.6% in May, the largest decrease since falling 1.6 percent in July 2022, while the index for final demand services moved up 0.2%. Sixty percent of the May decline in the index for final demand goods can be traced to a 13.8 percent drop in prices for gasoline.