Economy
Chicago Business Barometer Leaps 7 Points in November
Written by Sandy Williams
December 1, 2016
The November Chicago Business Barometer, or Chicago PMI as it is also known, leapt 7 points from October to register 57.6. The reading was the highest since January 2015 with four of the five components of the index showing improvement. On a three month moving average the index increased two points to 54.1.
New orders increased by 10.7 points along with production which rebounded from its fall in October. Order backlogs moved out of its three month contraction and supplier deliveries increased. Despite the gains in orders and output, employment levels fell back into contraction.
Inventories rose at the fastest pace since October 2015 and expanded in November. The prices paid index was above the 12-month average of 52.2 but on a month over month basis fell to 56.8.
“The November reading for the Business Barometer marked the sixth month of expansionary business activity in the US. Strength in orders, a recovery in oil prices and the stronger dollar have all impacted businesses with varying degrees,” said Shaily Mittal, senior economist at MNI Indicators. “Respondents to our survey also remain optimistic about business activity in 2017 although the new government’s policies and the Fed’s approach towards monetary tightening would impact the course of business activity over the next year.”
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Sandy Williams
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