According to the Metal Industry Indicators report released by the US Geological Survey (USGS), the steel leading index for the US decreased by 0.4 percent in March this year, the latest month for which it is available, falling to 111.4 from a revised 111.9 in February. Its six-month smoothed growth rate decreased to 1.2 percent in March from a revised 2.2 percent in February.
Slips in the S&P stock price index for iron and steel companies, car and light truck sales in March pulled down the steel leading index in March. However, a higher index for new housing permits offset some of those declines. The USGS report points out that the steel leading index growth rate still suggests that the steel industry activity could continue to grow in the near term.
Note: Composite coincident indexes for the metal industries consist of indicators for production, shipments, and total employee hours worked. A growth rate above +1.0 percent is usually a sign of an upward near-term trend for future metals activity, while a growth rate below -1.0 percent indicates a downward trend.