Economy
Chicago PMI Slips to 66.8 in August, Remains Strong Historically
Written by Brett Linton
September 1, 2021
The Chicago Business Barometer declined to 66.8 in August, according to MNI Indicators, the fourth-highest pandemic-era reading. The August PMI is down 6.6 points from the month prior. MNI reports that order backlogs rose significantly in August, while production decreased. Firms say they are unable to keep up with new orders due to limited raw material availability and staffing issues.
Order backlogs jumped 11.6 points due to a shortage of materials, freight inconsistencies, and insufficient staff. Supplier deliveries increased to a three-month high, with one respondent reporting ‘the worst delivery times in three years.”
Inventories continued to increase in August, reaching the highest level since March. Some respondents reported stockpiling to get ahead of future supply chain disruptions, others said their inventories were declining due to logistics issues.
Prices paid at the factory gate rose yet again, reaching a 42-year high, as companies continued to report higher costs on production materials.
Demand for labor increased again in August, as firms struggle to find qualified workers.
Production fell 7.8 points in August, while new orders were down 4.4 points, suggesting demand is growing at a slower pace compared to July.
MNI asked firms, “When do you expect the supply chain impact of COVID-19 to peak?” The majority expect it to peak in 2022.
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.
By Brett Linton, Brett@SteelMerketUpdate.com
Brett Linton
Read more from Brett LintonLatest 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.