Economy
Chicago Business Activity Expands in September
Written by Sandy Williams
October 1, 2020
Business activity in the Chicago area surged in September, expanding for the third month in a row. The MNI Chicago Business Barometer soared 11.2 points to 62.4, its highest level since December 2018. Business sentiment jumped sharply to 55.2, its best performance since Q1 2019.
Production jumped 16 points, nearing a two-year high, while demand picked up 22 points for the highest new orders reading since November 2018. Order backlogs rose 14.4 percent and supplier deliveries gained 2.8 points. Inventories were at a four-month high, but still mired below the 50-mark.
Employment rose in September, but firms continued to report additional layoffs.
Prices during the month increased at the factory gate, jumping 9.7 percent. Costs rose for raw materials, cleaning supplies and PPE.
A majority of respondents, 52.2 percent, reported an increase in business costs during the pandemic, 13 percent saw costs go down, and over one-third said there were no changes to expenses during the crisis.
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
ISM: Manufacturing growth slows in July, hits 10-month low
US manufacturing activity slowed again in July to a 10-month low
CRU: Pushing EU imports back to 15% would be a big task
Several EU member states have published a ‘non-paper’ that puts forward proposals for a post-safeguard trade measure.
SMU Community Chat: Tariff-induced panic purchases, inflation, and calculating costs
Chief executive of the Institute for Supply Management (ISM), Tom Derry highlighted how reactive buying behavior has shifted the market into a quiet demand period. Derry presented ISM data during the weekly SMU community chat.
Architecture billings still sluggish despite project inquiry uptick
The Architecture Billings Index (ABI), a leading indicator for non-residential construction activity, declined for an eighth straight month in June.
Beige Book: Tariff pressures mount, flat outlook
All districts reported “experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction.”