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 October 2011, the latest month for which it is available, dropping to 111.8 from a revised 112.2 in September. Its six-month smoothed growth rate decreased to 0.6 percent in October from a revised 0.8 percent in September.
The steel leading index growth rate has been trending down since the beginning of the year and has now slipped into negative territory, pointing to slower activity growth in the steel industry in the months to come.
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.