Economy
Chicago Manufacturing Activity Strengthens in January
Written by Sandy Williams
January 31, 2015
The Chicago Business Barometer rose 0.6 points in January to 59.4 from a revised reading of 58.8 in December. The increased manufacturing activity follows two consecutive months of declines.
The index showed a modest increase in a new orders, order backlogs and production, driving employment to a 14-month high.
Inflationary pressures eased for the fourth consecutive month and at faster rate in January due to low oil prices. Inventories of finished goods dropped 15 points, falling into contraction after strong growth in the second half of 2014.
Commenting on the Chicago Report, Philip Uglow, Chief Economist of MNI Indicators said, “This was a solid start to 2015 with current growth in orders and output consistent with ongoing strength in US GDP. Encouragingly, the January survey showed that strength we saw in the second half of 2014 is having a significantly positive impact on employment.“
”The sharp fall in input costs due to the lower oil price, evidenced by the lowest level of Prices Paid for more than five years, will have a positive impact on business activity as well as consumer spending.“
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.