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
American steel firms’ fundamentals sound for 2024: Fitch
Sector fundamentals for US steel companies remain solid overall, according to ratings agency Fitch’s 2024 outlook report.
Durable goods orders slip in October
New orders for manufactured durable goods fell in the US in October.
October US housing starts inch higher but remain down on-year
US housing starts crept higher for a second consecutive month in October. Starts were lower, however than the same month last year, according to the most recent data from the US Census Bureau.
NAHB: Builder Confidence Down for Multifamily and Single-Family Starts
Increasing mortgage rates have caused builders to lose confidence in the market, according to the National Association of Home Builders (NAHB).
CRU Aluminum: Geopolitics, Sustainability Goals Could Alter 2024 Trade Flows
European Aluminium, an association representing the entire European aluminum value chain, announced in a press release that it supports the European Commission's proposed 12th package of sanctions against Russia.