According to the Metal Industry Indicators report released by the US Geological Survey (USGS), the steel leading index for the US increased by 0.1 percent in December 2011, the latest month for which it is available, rising to 111.4 from a revised 111.3 in November. Its six-month smoothed growth rate decreased to 2 percent in December from a revised 2.1 percent in November.
The steel leading index growth rate had been trending down in the first months of 2011. However, the modestly high steel leading index growth rate recorded in the last two months suggests that 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.