Economy

Chicago PMI Rises to 68.4, Fourth Highest Level in Past Decade
Written by Brett Linton
October 29, 2021
The Chicago Business Barometer increased to 68.4 in October, according to MNI Indicators, following two consecutive months of decline. This is the fourth highest PMI level recorded in the last 10 years, following the May, July, and April 2021 highs. The October PMI is up 3.7 points from the month prior. MNI reports that order backlogs recovered more than half from their sharp September decline, and supplier deliveries increased. Firms again reported worsening port congestion and ongoing issues with trucking, rail and air cargo logistics.
MNI reports new orders recovered 3.1 points from September’s six-month low. Some businesses said raw material shortages and a low supply of critical components (i.e. semiconductors) at suppliers wer impacting opportunities. Prices paid rose by 3.6 points in October to a 42-year high, with many companies reporting that prices continue to be an issue. Production was the single component to decline in October, reaching a 14-month low. October employment increased for the fourth consecutive month to a three-year high.
MNI asked firms what they anticipated will be the greatest challenge for their business in Q4; over half responded logistics. Firms were also asked “are you considering new hires in 2022?” to which 72% said they were looking to recruit; 11% said no.
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

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.

AIA: Architecture firms still under pressure
Architecture firms reported a modest improvement in billings through August, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.