Economy
July Chicago Business Barometer Indicates Solid Economy
Written by Sandy Williams
July 29, 2016
The Chicago Business Barometer lost one point in July to register 55.8 after a year and a half high of 56.8 in June, according to MNI Indicators.
New orders fell 3.9 points to 59.3 but kept most of June’s gains. Order backlogs, at a high last month, remained above the 50 neutral mark. Inventories grew in July, adding to June’s double digit increase that followed a November to May drawdown on inventory levels.
Prices paid fell for the third month but overall inflationary pressures held steady. Employment levels posted a solid gain above 50 after three months of contraction.
The three month moving average increased to 54.0 from 52.2 at the end of second quarter.
“Demand and output softened somewhat in July following a solid showing in June but still outperformed the very weak results seen earlier in the year. On the upside, it was the first time since January 2015 that all five Barometer components were above 50. Looking at the three-month average, the Chicago Business Barometer so far suggests economic activity running at a healthier pace in Q3,” said Lorena Castellanos, senior economist at MNI Indicators.
“Another positive came from the Employment Indicator. Although it’s still relatively weak, should July’s increase hold then it could be read as a tentative sign of growing business confidence about economic growth ahead,” she added.
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Sandy Williams
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