Market Data
Chicago Business Barometer fell to four-year low in May
Written by Brett Linton
May 31, 2024
The Chicago Business Barometer tumbled lower in May, now at the lowest measure recorded since May 2020, according to Market News International (MNI) and the Institute for Supply Management (ISM).
The Barometer reading eased 2.5 points to 35.4 in May from April, marking the sixth consecutive month of contracting business conditions. The latest reading is tied with April 2020 for the second-lowest reading seen in our 13-year data history.
The MNI report credits this reduction to substantial declines in new orders, order backlogs, and employment. These three subcomponents are now at the lowest levels recorded since the pandemic. An increase in production and supplier deliveries from April to May slightly offset the decline.
Respondents were asked one special question this month, inquiring if recent supply-chain events have had an impact on their business and citing the recent Francis Scott Key Bridge collapse in Baltimore as an example. The majority responded they have felt no impact, 19% reported they expect to experience a moderate disruption, while 11% said the impact was unknown. Only 4% responded that they are currently experiencing disruptions.
An interactive history of the Chicago Business Barometer Index is available here on our website.
Brett Linton
Read more from Brett LintonLatest in Market Data
Final Thoughts
Most steel buyers think that steel prices will continue to rise into the 2026. But they don’t see the kinds of big gains that have characterized past market upturns, according to the results of SMU’s latest steel market survey.
Chicago Business Barometer improves but still contracts in October
The Chicago Business Barometer’s October reading still indicates a cooling in general business activity despite posting a surprise gain.
Drilling activity slows at October’s end in US and Canada
The latest Baker Hughes rig count report showed oil and gas drilling slowing in both the US and Canada last week.
SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members.
SMU Steel Demand Index improves but remains in contraction
SMU’s Steel Demand Index remains in contraction, according to late October indicators. Though growth faded at a slower pace, it rebounded from one of the lowest readings year-to-date from earlier in the month.