Economy
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 Economy
Industry groups praise Senate for passing tax and budget bill
The Steel Manufacturers Association and the American Iron and Steel Institute applauded the tax provisions included in the Senate's tax and budget reconciliation bill.
Chicago PMI dips 0.1 points in June
The Chicago Purchasing Managers Index (PMI) slipped 0.1 points to 40.4 points, in June.
Multi-family pullback drives housing starts to 5-year low in May
US housing starts tumbled in May to a five-year low, according to figures recently released by the US Census Bureau.
Architecture firms still struggling, ABI data shows
Architecture firms reported a modest improvement in billings through May, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.
Manufacturing in New York state contracts again
However, companies are growing more optimistic about the future.