Economy
Business Activity Softens in May
Written by Sandy Williams
May 31, 2019
The MNI Chicago Business Barometer gained 1.6 points in May to register 54.2. Survey responses showed softening in both manufacturing business activity and confidence. The three-month average for the Index slipped to a two-year low, said MNI Indicators.
Production and new orders rose in May, but not enough to make up for weaker levels in April. Production matched its three-month average, but was well below its 12-month average.
Weaker demand caused backlogs to contract for the second time this year. Inventories grew after three months of drawdown and seem to be returning to normal levels, said MNI. Supplier delivery times expanded at a slower rate than in March with some participants commenting on delays at rail and port hubs. Factory gate prices increased slightly after falling by double digits in April.
In a special question for May, 40 percent of firms said they were adversely impacted by supply side issues, pointing at tariffs and delays adding to costs and reducing competitiveness.
“This was the second increase in business sentiment this year, with firms having longer order books and thereby raising production. However, they kept employment close to the neutral level amid a lack of adequate skills and volatility in demand,” said Shaily Mittal, Senior Economist at MNI.
“There is no getting away from the general softness in the data. Indicators are significantly below their last-year averages but are moving towards their long-term means, implying that if business conditions are not as bright as they were, they are not bad either,” added Mittal.
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 us at info@SteelMarketUpdate.com.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Second steel derivatives S232 inclusion window opens, business community voices concern
The US Department of Commerce announced that its second window for submitting applications for the inclusion of derivative steel and aluminum products in Section 232 tariffs is now open, according to the US Federal Register. September’s Inclusion Window Sept. 15 through Sept. 29, applicants can email requests for inclusions to the Defense Industrial Base Programs. The first […]
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.