Economy

Chicago Business Barometer Indicates Slower Growth

November 28, 2014

The Chicago Business Barometer dropped 5.4 points to 60.8 in November, wiping out October’s sharp increase, and moving closer to September’s level of 60.5. Manufacturing growth continues but at a slower pace.

New orders slid 11.7 points to 61.9 following a one year high in October. Overall, barring an unexpected December decline, orders should be higher in Q4 than Q3.

Production growth slowed as well in November but exceeds its 10 year average and the average for the past 12 months.

Inventory levels were considered about right for 66 percent of those surveyed. Supplier delivery times were shorter for the second consecutive month after increasing for five months.

Commenting on the Chicago Report, Philip Uglow, Chief Economist of MNI Indicators said, “Following the sharp rise in the Barometer to a one year high in October it wasn’t too surprising to see activity ease somewhat in November. Overall the trend remains firm and activity looks set to pick up in Q4 from Q3.”