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
Steel Summit: ITR economist urges execs to prepare for growth, not recession
If the steel industry professionals who made it to the very final presentation of this year’s SMU Steel Summit were expecting another round of cautious forecasting, they were in for a surprise. Because what they got was a wake-up call.
ISM: Manufacturing growth remained down in August
US manufacturing activity remained muted in August despite a marginal gain from July's recent low, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.
Steel Summit: Dr. Basu blames tariffs for riskier path ahead
Steel executives packed the main conference hall of the 2025 SMU Steel Summit on Tuesday, Aug. 26, to hear economist Dr. Anirban Basu lay out his blunt view of tariffs, inflation, and demand.
Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.
US housing starts gain momentum in July
US housing starts rose in July both month-on-month and year-on-year, according to figures from the US Census Bureau.