Economy

Chicago Business Barometer Surges to 66.2 in October
Written by Sandy Williams
October 31, 2014
The Chicago Business Barometer surprised economists with jump to 66.2 from 60.5 in September, well above the forecast decline to 60.0. The reading on this month’s purchasing manager index was the highest since October 2013.
The index average for third quarter was 59.1 but in the last three months the index has averaged 63.6—an indicator of strong economic growth. New orders showed the most growth in September increasing to 73.6 from 60.0. The indexes for production and employment both made gains last month. Employment increased to the highest level since November 2013 suggesting confidence in the economy’s recovery.
Commenting on the Chicago Report, Philip Uglow, Chief Economist of MNI Indicators said, “The strengthening in the Chicago Business Barometer suggests that the US economic recovery is more entrenched. The October survey also provided clearer evidence that companies are taking on more workers to keep up with higher demand.”
“Concerns about the global economy and the continued low level of inflationary pressures may persuade the Fed to keep rates lower for longer, but the domestic economy is growing healthily.”
Below is an interactive graphic of the Chicago Business Barometer Index History, but it can only be seen when you are logged into the website and reading the newsletter online. If you need any assistance logging in or navigating the website, contact us at info@SteelMarketUpdate.com or 800-432-3475.
{amchart id=”111″ Chicago Business Barometer Index}

Sandy Williams
Read more from Sandy WilliamsLatest in Economy

SMU Community Chat: Tariff-induced panic purchases, inflation, and calculating costs
Chief executive of the Institute for Supply Management (ISM), Tom Derry highlighted how reactive buying behavior has shifted the market into a quiet demand period. Derry presented ISM data during the weekly SMU community chat.

Architecture billings still sluggish despite project inquiry uptick
The Architecture Billings Index (ABI), a leading indicator for non-residential construction activity, declined for an eighth straight month in June.

Beige Book: Tariff pressures mount, flat outlook
All districts reported “experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction.”

Steel exports recovered in May but still historically low
US steel exports rose 10% from April to May but remained low compared to recent years. This came just one month after exports fell to the lowest level recorded in nearly five years.

AISI: Raw steel production ticks up near recent high
The volume of raw steel produced by US mills inched higher last week, according to the American Iron and Steel Institute (AISI). After steadily increasing in April and May, domestic mill output stabilized in early June and has remained historically strong since.