Economy
Chicago Business Barometer Moves Out of Contraction
Written by Sandy Williams
September 3, 2019
The Chicago Business Barometer rose six points in August after two months of contraction. The Index posted a 50.4 last month, compared to 44.4 in July.
MNI Indicators still sees an overall softening in business conditions despite the gains in August. The three-month moving average, a better indicator of conditions, fell to 48.2
Supplier deliveries and Inventories declined in August. Deliveries dropped sharply from 55.6 in July to 50.3 in August. Inventories dropped 11.2 percent to 47.9, indicating destocking by firms.
Production was still muted despite gaining 6.7 points. New orders pulled out of contraction and back into expansion territory.
Factory gate prices rose 3.7 points to a five-month high of 59.8, but were still far from reaching the 12-month high of 79.8.
Sixty-three percent of firms surveyed expect no change in business investment plans for the rest of the year, 27 percent are planning increases and 10 percent reductions. Global uncertainty was cited as the main current concern.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
US sets Section 232 tariffs on trucks and buses
Medium- and heavy-duty trucks (MHDV) and buses imported to the US will start being charged Section 232 tariffs beginning Nov. 1.
AMU: Consumer auto delinquencies: Warning sign for consumer health?
The Consumer Federation of America estimates rising total auto debt at a staggering $1.66 trillion, along with increasing repossessions and a sharp increase in delinquencies.
Beige Book: Regional market growth remains mostly flat
Economic growth in some US regions in September was offset by challenges in others, causing the market to appear largely unchanged overall, according to the Federal Reserve’s latest Beige Book report.
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.