Economy

Chicago Business Barometer Posts Third Month of Contraction
Written by Sandy Williams
December 3, 2019
The Chicago Business Barometer rose 3.1 points to 46.3 in November, but remained in contraction for the third consecutive month. All but one component of the general index remained below the neutral 50.0 mark.
New orders rose 12.5 points to 49.9, indicating an improvement in demand. Production slipped to 42.3.
Order backlogs rebounded from October’s sharp decline to 33.1, posting a 45.0 in November. Firms continued to deplete stocks resulting in an 8.7 percent decline to a reading of 43.0 for the month.
Employment demand continued to weaken, dropping the employment index to 49.6. The three-month average for the index was 48.3
Supplier deliveries declined sharply to an index reading of 50.2 for its lowest level since June 2016. Factory gate prices were at their lowest level since April at 53.5.
Tariff costs were a concern for many in the survey. In a special question by MNI Indicators, 57 percent of businesses said they are absorbing tariff costs versus 43 percent who said they are passing costs on to customers.

Sandy Williams
Read more from Sandy WilliamsLatest in Economy

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.

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.