Economy
Chicago Business Barometer at 11-Month High in November
Written by Sandy Williams
November 30, 2018
The Chicago Business Barometer jumped 8.0 points in November to an 11-month high of 66.4. Business was booming as new orders rose to their highest level since May 2014 and output increased for the second straight month.
“The MNI Chicago Business Barometer clipped a run of three consecutive declines in emphatic style in November, boosted primarily by resurgent orders – stronger than typically seen at this time of year and enough to push the Barometer to its best level since December,” said Jamie Satchi, economist at MNI Indicators.
“However, many firms reported seeing the effects of higher China tariffs on their invoices for the first time and voiced concern that business could be stifled going forward,” he added.
Supply issues continued during the month, driving the supplier deliveries index to its highest levels since April 2004. Firms cited delays in receiving material from offshore suppliers. The inventory indicator slipped to a three-month low in November after two months of stocking up in preparation for the holidays and to protect against higher prices from further trade disruptions. Higher demand resulted in an a four-month high for the orders backlog index.
Employment levels increased in November, but firms continued to report difficulty finding qualified labor. When asked if labor issues would impact their business in 2019, 42.6 percent of firms said no, but 36.2 percent said issues were likely to occur. The remainder of respondents were unsure.
The price indices remained elevated last month with prices paid in the historically high range. “Some firms reported an increase in costs across a range of goods, while others said they were in the process of renegotiating contracts,” said MNI Indicators.
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 Brett@SteelMarketUpdate.com.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
ISM September survey captures deepening manufacturing gloom
The Institute for Supply Management’s (ISM) latest monthly report on manufacturing reflects a bleak view of American industry in September.
Key industries concerned over government shutdown’s impact on steel, manufacturing
Trade groups cautioned that a prolonged shutdown could strain US industry.
Chicago Business Barometer catches cold winds of contraction in September
The Chicago Business Barometer's September reading indicates a softening in overall business activity in the Midwest for the third consecutive month, with new orders and backlogs retreating further.
Metalforming market sentiment takes a dive in September: PMA
Metalforming manufacturers anticipate a decrease in near-term conditions, according to the Precision Metalforming Association's (PMA) Business Conditions Report for September.
AIA: Architecture firms still under pressure
Architecture firms reported a modest improvement in billings through August, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.