According to the "Metal Industry Indicators" report released by the US Geological Survey (USGS), the steel leading index for the US increased by 1.1 percent in December 2009, the latest month for which it is available, to 106.3 from a revised 105.1 in November. Its six-month smoothed growth rate increased to 8.1 percent from a revised 6.6 percent in November.
Most of the steel index' components increased, with the largest positive contribution coming from a rise in the Standard & Poor's stock index for steel companies. A jump in the index for new housing permits also buoyed the steel index, as did the longer average workweek in iron and steel mills in December. However, a pullback in shipments of household appliances and the falling M2 money supply growth rate offset some of the gains of the other indicators.
The dip in the steel scrap price growth rate in November and December also held back the steel leading index. Nevertheless, the steel leading index growth rate continues to climb, suggesting that a recovery in US steel industry activity is likely to continue in the near term.