The Chicago Business Barometer increased at its fastest pace in six months to a reading of 63.0 in April from 59.9. The three month moving average registers just below 60 which is an indication of continued recovery for economy.
New orders and production led the rise in activity along with improvements in order backlogs and employment levels. Demand fluctuation has made employment volatile in recent months but April saw a rebound that offset March’s decline.
Supplier deliveries benefited from long awaited spring conditions resulting in faster delivery times but with expansion at a slower rate than other components in the index. Draw down of finished goods inventory slowed and was mostly neutral in April. Prices paid were at their lowest level in a year.
“Last month’s downturn appears to have been a blip with the Barometer increasing sharply in April to the highest since October 2013,” said Philip Uglow, Chief Economist at MNI Indicators. Looking at both March and April in aggregate leaves the pace of growth steady at around the 60 mark, which chimes with continued growth in the US economy.”
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