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
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