Economy
Chicago Business Barometer Shows Robust Demand
Written by Sandy Williams
July 31, 2018
The Chicago Business Barometer hit a six-month high in June, gaining 1.4 points to post at 65.5. New orders and production also reached six-month highs, increasing 8.0 percent and 10.6 percent, respectively.
Increasing demand led to a third month of growth for order backlogs. The indicator posted a nine-month high with firms reporting unfinished work from June orders, as well as production inefficiencies and employee shortages. Firms increased personnel for the third consecutive month, but reported difficulty finding qualified employees.
Lead times for raw materials eased slightly but were still significantly elevated, impacting production. Inventories of raw materials were at an 18-month low.
Escalating input prices were reported and were attributed to tariffs on imported goods. The prices paid index increased to a 10-year high in July.
“Input prices continue to be a thorn in the side of businesses, however, with the Prices Paid indicator at the highest in a decade and continuing to signal pipeline inflation,” said Jamie Satchi, economist at MNI Indicators.
Looking forward to the third quarter, more than half of firms surveyed anticipate stronger demand than in the second quarter, 25 percent expected no change and nearly 14 percent expected a drop in demand.
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 in to or navigating the website, please contact Brett at 706-216-2140 or Brett@SteelMarketUpdate.com.
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.