Green Country Manufacturing Report

What changed this month

Steel is the story. The producer price index for iron and steel has risen nine months in a row and stands +17.9% above a year ago, against +9.9% for all commodities and +5.6% for plastics — a fabricator quoting off last winter's steel price is quoting below cost. The region's plants are hiring into it: manufacturing payrolls reached 86,483 in the first quarter, +1.9% on the year and the highest in the two years this series covers, led by fabricated metal (+7.1%) and transportation equipment (+2.8%), while the number of worksites slipped 1.1% — fewer, larger plants. Wages rose +2.7% to $1,467 a week, 20% above the regional average job. Nationally the cycle is flat: industrial production +1.1% on the year and capacity use 76.3%, so the growth here is local. Energy cut both ways — industrial gas at $3.16/Mcf is 13.7% cheaper than last June, industrial electricity +12.2% dearer, diesel +58% — and prime at 6.75% is the cheapest money since late 2022.