Employment by Industry (U.S.): In April 2023, the total number of seasonally adjusted (SA), non-farm people employed in the U.S. was 155.7 million (M) – an increase of 253,000 (+0.2%) month on month (m/m). When compared to April 2022, total employment is up by 2.6% 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 0.5% m/m.

Oil and Gas Rotary Rig Counts: The total number of operating rigs in Canada for the week ending April 28th was 36 oil and 57 gas (totaling 93). In percentage terms, on a month on month (m/m) basis, oil rigs were down 37.9% and gas down 29.6%. On a year on year (y/y) comparison, rigs were down 20.0% for oil and up 14.0% for gas. The combined figure for y/y was -2.1% or -2 rigs.

Oil and Gas Rotary Rig Counts: The total number of operating rigs in the U.S. for the week ending April 28th was 591 oil and 161 gas (totaling 752). In percentage terms, on a month on month (m/m) basis, oil rigs were down 0.2% and gas was up 0.6% On a year on year (y/y) comparison, rigs were up 7.1% for oil and up 11.8% for gas. The combined figure for y/y was +8.2%, or +57 rigs.

Advance Durable Goods Orders: The U.S. Census Bureau reported that new orders for durable goods in March 2023 increased 3.2% (m/m) to $276.4M, following the 1.2% decrease in February. The always-volatile nondefense aircraft orders, down 10.9% y/y, influenced this trend significantly.

Producer Price Index: The U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) for final demand decreased 0.5% in March 2023 (seasonally adjusted), following no change in February. The index for final demand goods fell 1.0% in March, while the index for final demand services moved down 0.3%, the largest decline since April 2020. Eighty percent of the March decline in the index for final demand goods can be traced to an 11.7-percent drop in prices for gasoline.

Crude Oil & Natural Gas Pricing: March’s average West Texas Intermediate (WTI) crude oil price per barrel decreased 5% month on month (m/m). The WTI is down 32% year on year (y/y), coming in at $73.28 / barrel in March 2023 vs. $108.50 / barrel in March 2022.