Economy

Chicago Business Barometer Steady in August
Written by Sandy Williams
August 30, 2017
The MNI Chicago Business Barometer was unchanged in August at 58.9 after a July plunge that ended five months of increases.
Slight gains in production and orders were offset by declines in backlogs, employment and supplier deliveries. The inventory loss was significant, dropping the index 6.4 points to end in contraction and the lowest reading of the year. Limited inventory caused delays satisfying orders, according to some companies.
Employment dipped below 50, falling for the third month and slipping into contraction for the first time since March.
Inflationary pressures eased during the month and have been on a downward trend since the beginning of the year.
“Following the sharp rise in the barometer to a more than three-year high in June, it isn’t too surprising to see activity subsequently ease somewhat. However, overall, the trend remains firm, consistent with the growth story of the U.S. The disappointment comes from the employment indicator, which once again contracted, the sixth time in the last 12 months, with fewer firms expecting an increase in hiring,” said Shaily Mittal, senior economist at MNI Indicators.
The Chicago Business Barometer, published monthly by MNI Indicators and also referred to as the Chicago PMI, is a composite diffusion indicator made up of the Production, New Orders, Order Backlogs, Employment and Supplier Deliveries indicators and is designed to predict future changes in U.S. gross domestic product. An indicator reading above 50 indicates expansion compared with a month earlier, while below 50 indicates contraction. A result of 50 is neutral. The further an indicator is above or below 50, the greater or smaller the rate of change.

Sandy Williams
Read more from Sandy WilliamsLatest in Economy

Steel Summit: ITR economist urges execs to prepare for growth, not recession
If the steel industry professionals who made it to the very final presentation of this year’s SMU Steel Summit were expecting another round of cautious forecasting, they were in for a surprise. Because what they got was a wake-up call.

ISM: Manufacturing growth remained down in August
US manufacturing activity remained muted in August despite a marginal gain from July's recent low, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.

Steel Summit: Dr. Basu blames tariffs for riskier path ahead
Steel executives packed the main conference hall of the 2025 SMU Steel Summit on Tuesday, Aug. 26, to hear economist Dr. Anirban Basu lay out his blunt view of tariffs, inflation, and demand.

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.

US housing starts gain momentum in July
US housing starts rose in July both month-on-month and year-on-year, according to figures from the US Census Bureau.