Economy
Chicago Business Barometer Falls More Than Expected
Written by Sandy Williams
February 26, 2021
The Chicago Business Barometer slipped 4.3 points to 59.5 in February, though still above a reading of 50 that indicates expansion, following a 2.5-year high in January.
New orders plunged 11 points to their lowest level since August 2020. Production fell 9.3 points after two months of gains. Business activity at firms in the Chicago area was uneven, said MNI Indicators. Some companies enjoyed strong demand, while others reported a downturn from the pandemic.
Order backlogs were at the highest level since October 2017. Supplier deliveries continued to be challenged, and firms stated that logistical issues required increasing inventory stocks.
Raw material prices increased resulting in slightly higher factory gate prices.
Employment rose to a 16-month high, although the index remained in contraction for a seventh month.
A special question this month revealed that 87.2% of firms were undecided on whether to require employees to be vaccinated.
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.