Economy
Chicago Business Barometer rebounds in June
Written by Brett Linton
June 28, 2024
The Chicago Business Barometer rebounded in June following May’s four-year low, according to Market News International (MNI) and the Institute for Supply Management (ISM).
The Barometer reading jumped 12 points from May to June, now standing at a seven-month high of 47.4. This is the first monthly rise seen in six months, and the largest monthly movement recorded in nearly four years.
Although up over the prior month, June marks the seventh consecutive month the Barometer has indicated contracting business conditions. Since Sept. 2022, the Barometer has only indicated expansion for a single month (Nov. 2023). This time last year the Barometer was also in contraction territory at 42.8.
The MNI report primarily accredits June’s surge to increases in new orders, followed by rises in order backlogs, production, employment, and supplier deliveries. All five subcomponents increased from May to June.
Respondents were asked two special questions this month:
- The first asked if changes in financial conditions have impacted their suppliers or clients. Over a third said they felt no impact, while 31% said impacts were unknown at this time. Meanwhile, 22% responded they were experiencing difficulties with tighter credit conditions, and 9% reported they were not looking to utilize credit at this time. Only 3% responded they were winding down borrowing due to higher costs.
- The second asked when they are planning to make major capital investments for growth. The majority (36%) responded they were unsure, 23% responded they were investing now, and 10% indicated they would do so in the second half of this year. Finally, 26% responded they would invest in 2025, and 7% said sometime in the next two years.
Readers can view the full release here.
Brett Linton
Read more from Brett LintonLatest in Economy
Beige Book: Tariff pressures mount, flat outlook
All districts reported “experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction.”
Steel exports recovered in May but still historically low
US steel exports rose 10% from April to May but remained low compared to recent years. This came just one month after exports fell to the lowest level recorded in nearly five years.
AISI: Raw steel production ticks up near recent high
The volume of raw steel produced by US mills inched higher last week, according to the American Iron and Steel Institute (AISI). After steadily increasing in April and May, domestic mill output stabilized in early June and has remained historically strong since.
Steel groups welcome passage of budget bill
Steel trade groups praised the passage of the Big Beautiful Bill (BBB) in Congress on Thursday.
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.