Economy
Chicago Business Barometer Surprises with Gain
Written by Sandy Williams
April 30, 2021
The Chicago Business Barometer reached its highest level since December 1983 with a PMI reading of 72.1, according to MNI Indicators. The April PMI rose 5.7 points from March, refuting economists’ expectations of a dip to 65.
Demand was robust in April with the new orders index jumping 9.9 points to a near seven-year high. Production inched up another 0.9 points for the highest level since January 2018. A surge in buying activity due to raw material shortages indicates an anticipated rise in business activity, said MNI, citing anecdotal evidence.
Shortages of parts and raw materials resulted in order backlogs soaring 16.2 points to the highest level since December 1973. Depleted inventories caused the inventory index to plunge 8.7 points into contraction for the first time since December. Delivery times by suppliers remain slow although easing by 3.5 points in April.
Prices paid at the factory gate were at a 41-year high, leaping 11.1 points and indicating increased cost burdens for firms.
Employment was at the highest index reading since August 2018 and gaining 1.7 points for its second successive month of expansion.
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 into or navigating the website, please contact us at info@SteelMarketUpdate.com.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
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.
Metalforming market sentiment takes a dive in September: PMA
Metalforming manufacturers anticipate a decrease in near-term conditions, according to the Precision Metalforming Association's (PMA) Business Conditions Report for September.