Economy
Chicago Business Barometer 4Q Average Highest in 2 Years
Written by Sandy Williams
January 2, 2017
The Chicago Business Barometer fell 3 points in December to register 54.6. The Barometer has averaged 54.3 during fourth quarter, the highest in two years, and suggests that economic conditions have improved somewhat, said MNI Indicators.
The index for New Orders lost 6.7 points giving up the gains it made in November that pushed the Orders Index to its highest pace since June. Production also fell in December ending at the lowest level since October. Backlogs moved back into contraction along with inventories. Supplier deliveries was the only component of the Barometer to gain points in December.
Price paid rose in 1.2 points to 58.0 last month. Panelists surveyed indicated metals, plastics and transportation costs were increasing and likely headed higher.
“The Chicago Business Barometer ended 2016 in a much healthier position than a year ago when it slipped into contraction. This is largely owed to stronger outturns in the second half of the year and is testament to the resilience of the US economy.
“Most respondents to our survey remain upbeat about the fate of their business as we head into 2017, buoyed by fresh hope of better things to come under the new administration. Hopefully, 2017 can build on the momentum generated in the latter stages of 2016.” said Jamie Satchithanantham, economist at MNI Indicators.
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Sandy Williams
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