Economy
Chicago Business Barometer Shows Demand at Risk from Supply Issues
Written by Sandy Williams
June 1, 2021
The Chicago Business Barometer reached its highest level since November 1973, coming in at 75.2 for May.
New orders jumped 7.7 points, indicating strong demand in the region. Survey respondents noted that high consumer demand may be due in part to worries about raw material shortages.
Production slowed by 2.3 points and order backlogs were at a 70-year high after surging 7.5 points. Personnel shortages and logistics issues drove backlogs in May. Supplier delivery times remained a serious problem, said MNI Indicators. “Companies continuously noted delivery delays due to transportation issues and material shortages.”
Inventories were at a nine-month low, marking the second consecutive month in contraction.
Employment also slid back into contraction following two months above the 50-mark. The index declined 6.4 points as firms reported difficulty in finding workers.
The index for factory gate prices dropped 3.1 points in May, from the 41-year high in April. Raw material prices continued to rise for steel, plastics, copper and electronic components.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.
Manufacturing in New York state contracts again in May
Manufacturing activity in New York state declined for the third consecutive month, according to the May Empire State Manufacturing Survey from the Federal Reserve Bank of New York. Responding firms continue to forecast weaker business conditions in the coming months.
Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)
Architecture billings continue to slide in March
Architecture firms said billings continued to decline in March, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.