Economy

Chicago Business Barometer Surprises with Six Point Gain
Written by Sandy Williams
April 29, 2015
The Chicago Business Barometer rose 6 points to 52.3 in April, beating analyst expectations for a reading of 50. The index fell to a five and a half year low in February before bouncing up five points to 46.3 in March.
The index grew in four of its five components in April with New Orders gaining by double digits. Order backlogs rose strongly but remained under the 50 neutral point. Gains were made in production and employment, which was at its highest level since January. Lead times for supplier deliveries shortened for the second month while days to source production material rose for the second month.
MNI Indicators reports that comments from service centers were more positive than manufacturers.
Inventories of finished goods were down slightly in response to the increase in orders. Prices paid contracted at a faster rate.
“The bounce back in activity at the start of Q2 is consistent with a resumption of normal activity following the poor weather and port strikes earlier in the year. In percentage terms, the April jump is similar to last year, although the level of activity is lower overall, “said MNI Indicators Chief Economist Philip Uglow.

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.