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
Fed Beige Book: Economy improves, but manufacturing weak
While general economic conditions across the US improved slightly over the last six weeks, activity in the manufacturing sector was weak, according to the Fed’s latest Beige Book report.
SMU Community Chat: Simonson with the latest on construction
A lot of economists were predicting a recession last year. Ken Simonson, chief economist for The Associated General Contractors of America (AGC), wasn’t one of them.
Housing starts slip to seven-month low in March
Following a strong February, US housing starts eased through March to a seven-month low, according to the most recent data from the US Census Bureau.
Manufacturing activity in New York state continues to soften
New York state saw a continued decline in manufacturing activity in April, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York
Worldsteel projects steel demand to grow 1.7% this year
Global steel demand will reach roughly 1.793 million metric tons (1.976 million short tons) this year, an increase of 1.7% over 2023, the World Steel Association (worldsteel) said in its updated Short Range Outlook report. The gain will come after a 0.5% contraction in steel demand in 2023. Demand is forecasted to increase another 1.2% […]