Economy
Chicago Business Barometer Rebounds in January
Written by Sandy Williams
February 28, 2019
The MNI Chicago Business Barometer gained 8 points in February, climbing to 64.7, its highest level since December 2017. The February spike in business activity followed a decline to 56.7 in January.
New orders rose 15.2 points and production gained 8.5 points. Order backlogs lengthened after declining in January. Supplier delivery times declined for a fourth consecutive month, reaching their lowest index level since June 2017.
Inventories were kept tight by firms to mitigate volatile demand. The inventory index fell below the neutral point in February for the first time in seven months, said MNI Indicators. In contrast, the prices paid index rose for the first time in seven months as downward price pressure eased.
Employment levels were higher in February, but firms reported having difficulty finding qualified employees.
The special question section revealed that 48.9 percent of firms believed an interest rate hike would hurt business, while 46.7 percent said there would be no impact.
Trade issues negatively impacted 42.6 percent of firms surveyed, while one-fourth said they were unaffected.
“The sharp pick-up in the Barometer to a level not seen in over a year, underpinned by the growth in demand and production, showcases a healthy image of the U.S. economy,” said Shaily Mittal, senior economist at MNI Indicators. “With the Fed’s cautious approach towards monetary tightening along with soft inflation, firms remain optimistic about their business activity.”
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.
Manufacturing in New York state contracts again in May
Manufacturing activity in New York state declined for the third consecutive month, according to the May Empire State Manufacturing Survey from the Federal Reserve Bank of New York. Responding firms continue to forecast weaker business conditions in the coming months.
Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).
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.