Economy

Chicago Business Barometer Bounces Back in January
Written by Sandy Williams
January 30, 2016
The Chicago Business Barometer bounced back in January after a surprise drop in December. The index rose 12.7 points to 55.6 from the previous reading of 42.9.
The welcome surge followed a weak quarter averaging 47.7, the lowest average since Q3 2009. January’s increase, however, may not be sustainable said Chief Economist of MNI Indicators Philip Uglow.
“While the surge in activity in January marks a positive start to the year, it follows significant weakness in the previous two months, with the latest rise not sufficient to offset the previous falls in output and orders. Previously, surges of such magnitude have not been maintained so we would expect to see some easing in February. Still, even if activity does moderate somewhat next month, the latest increase supports the view that GDP will bounce back in Q1 following the expected slowdown in Q4.”
New Orders reached 58.8, its highest level since January 2015, with a leap of 20.2 points. Production surged by double digits climbing well above the 50 neutral level.
Order backlogs remained below 50 for the 12th consecutive month, but rose sharply in January. Employment levels increased moderately but remained in contraction. Supplier deliveries fell in January 4.5 points to 49.2.
Prices paid declined slightly in last month remaining below the 50 neutral point. “Continued weakness in commodity prices and the impact of the strong dollar meant that the long-term disinflationary trend continued, with downward pressure on prices intensifying in January,” wrote MNI.
Below is a graph showing the history of the Chicago Business Barometer. You will need to view the graph on our website to use it’s interactive features, you can do so by clicking here. If you need assistance with either logging in or navigating the website, please contact our office at 800-432-3475 or info@SteelMarketUpdate.com.

Sandy Williams
Read more from Sandy WilliamsLatest in Economy

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.

Beige Book shows concerns about trade policy
Manufacturing was mixed, but two-thirds of districts said activity was little changed or had declined.

New York state manufacturing index drops again in April
Firms were pessimistic, with the future general business conditions index falling to its second lowest reading in the more than 20-year history of the survey

Construction adds 13,000 jobs in March
The construction sector added 13,000 jobs, seasonally adjusted, in March, but tariffs could undermine the industry.