Economy

Chicago PMI Exceeds Expectations in March
Written by David Schollaert
March 31, 2022
The Chicago Business Barometer showed a much bigger than expected increase in March after falling to an 18-month low the month prior, according to the latest indicators from Market News International (MNI) and the Institute for Supply Management (ISM).
MNI Indicators said the business barometer jumped to 62.9 in March from 56.3 in February and was well ahead of the expected 57.0 measure. A reading above 50 indicates growth.
The bigger-than-expected advance by the business barometer came as all main indicators increased, with the inventories index and the new orders seeing the largest boost. Only prices paid declined in March.
The inventories index surged to a nearly 50-year high of 68.7 in March from 57.3 in February as firms stocked up due to ongoing supply chain disruptions. The employment index also climbed to 48.1 in March from 43.5 in February – last monwth was the lowest since October 2020 – as firms saw employment levels improve. Hiring skilled workers remained challenging, though, keeping the reading below 50, and still indicating a contraction.
The new orders index also shot up to 61.9 in March from 53.0 in February, while the production index rose to 60.0 from 55.4. The prices paid index edged down to a 12-month low of 85.7 in March from 86.5 in February – but remained elevated compared to historical norms
Order Backlogs inched up 2.5 points to a five-month high of 64.3 in March. Backlogs have remained persistently high due to key material constraints, including chip shortages.
An interactive history Chicago Business Barometer Index is available on our website. If you need assistance logging into or navigating the website, please contact us at info@SteelMarketUpdate.com.
By David Schollaert, David@SteelMarketUpdate.com

David Schollaert
Read more from David SchollaertLatest 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.