Economy
Chicago Business Barometer Bounces Back in August
Written by Sandy Williams
August 29, 2014
The Chicago Business Barometer rebounded in August to 64.3, gaining 11.7 points and making up the decline in July’s Purchasing Manager Index (PMI). The August jump confirmed that July’s weakness was only temporary, according to Philip Uglow, Chief Economist at MNI Indicators.
Production rose by 20 points to its greatest monthly increase in ten years. New orders and backlogs regained and exceeded the points lost in July. Employment was lower for the month but remained in growth territory above a reading of 50.
Inventories grew at the fastest pace in eight years as firms anticipate higher future demand. Supplier delivery times increased for the fourth consecutive month.
Prices paid were above the 60 mark but MNI says “at this level it doesn’t point to a severe inflationary threat.”
“We had speculated that July’s downturn would prove temporary rather than signal the start of a downward trend. The sharp bounceback in August, with growth in output at the highest for nearly ten years, suggests that growth in the US economy will continue apace in Q3,” said Uglow.
SMU Note: You can view the interactive graphic below when you are logged into the website and reading the newsletter online. If you have not logged into the website in the past and need your username and password, contact us at: info@SteelMarketUpdate.com or by calling 800-432-3475. If you need help navigating the website we would also be very happy to assist you.
{amchart id=”111″ Chicago Business Barometer Index}
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.
Manufacturing in New York state contracts again in May
Manufacturing activity in New York state declined for the third consecutive month, according to the May Empire State Manufacturing Survey from the Federal Reserve Bank of New York. Responding firms continue to forecast weaker business conditions in the coming months.
Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)
Architecture billings continue to slide in March
Architecture firms said billings continued to decline in March, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.