Economy

Chicago Business Barometer at Six-Month Low
Written by Sandy Williams
February 28, 2018
The MNI Chicago Business Barometer fell in February to its lowest level since August 2017. The barometer slipped 3.8 points from January’s reading to 61.9. Compared to a year ago, the index was up 8 percent and was above the 2017 average of 60.8
New orders were at a six-month low and production was at its lowest level since September. Order backlogs and supplier deliveries eased somewhat in February, said MNI.
Inventory building was at its lowest rate since October. After peaking at a three-year high in December, inventories have fallen to early 2017 levels.
Elevated raw material prices receded slightly in February with steel, wood, foam and alloy mentioned as particularly expensive, said MNI. Nearly half of the firms surveyed expect input prices to continue to be a challenge to business operations during the next 12 months, while 6 percent said higher pricing will help, and 44 percent expect little to no impact.
Hiring intentions eased as firms reported a shortage of skilled workers to fill vacancies.
“Disruptive weather conditions this month and large promotions at the back end of last year appear to have weighed on demand and output in February, but despite the barometer’s broad-based decline activity remains upbeat,” said Jamie Satchi, economist at MNI Indicators.
“That said, a large proportion of firms are anxious about the cost of input materials, and warn they could pass on these higher costs to consumers if inflationary pressures do not abate,” he added.
Below is a graph showing the history of the Chicago Business Barometer. You will need to view the graph on our website to use its interactive features, you can do so by clicking here. If you need assistance logging into 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.