Economy
Chicago Business Barometer Rebounds, But Firms Remain Worried
Written by Sandy Williams
July 31, 2020
A spike in business activity was recorded by the Chicago Business Barometer in July. The index rebounded from 12 months of contraction to a reading of 51.9.
Increasing demand resulted in a vault of 23.8 points for the new orders index to its highest level since August 2019. Production soared 49.5 percent and back into expansion territory. The future outlook remained uncertain for participating firms, however, due to the ongoing pandemic.
Order backlogs remained in contraction with a gain of 15.3 points in July. Inventories gained 6.9 points after a steep decline in June. The supplier deliveries index fell 6.4 points to its lowest reading since January and prices paid reached a seven-month high.
Although employment gained 26 percent, survey participants mentioned continued layoffs due to the coronavirus and difficulties finding new staff.
A potential second wave of COVID-19 has 51.3 percent of companies making contingency plans. The majority of firms, 65 percent, said they expect growth for the balance of the year to be below 5 percent.
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
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Beige Book finds growing economic, policy uncertainty
All districts reported "hesitancy and a cautious approach to business and household decisions,” according to the Beige Book.
ISM: Manufacturing continues to contract in May
May marks the third consecutive month US manufacturing activity declined, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.
Chicago PMI decreases 4.1 points in May
The Chicago Business Barometer reports that decreases in new orders, order backlogs, and softer production pulled the index down by 4.1-points to 40.5, in May.
Architecture firms struggle through April
For the third month in a row, architecture firms reported a reduction in billings through April, according to the latest Architecture Billings Index release.