Economy

Chicago Business Barometer remains dismal through July
Written by Brett Linton
July 31, 2024
The Chicago Business Barometer contracted further in July, according to Market News International (MNI) and the Institute for Supply Management (ISM).
The Barometer reading fell over two points from June to 45.3 in July. Any reading above 50 indicates improving business conditions, while a reading below 50 indicates contraction in business activity. At this time last year, the Barometer was also in contraction territory at 42.8.
June marks the eighth consecutive month the Barometer has indicated deteriorating business conditions. Since September 2022, the index has only indicated expansion once (November 2023).
The MNI report primarily accredits July’s fall to declines in production; that subcomponent decreased 8.5 points from June. The new orders, order backlogs, and employment subcomponents also eased 2-3 points from the month prior. Supplier deliveries was the only subcomponent to increase from June to July, rising 5.1 points to a 13-month high.
Respondents were asked two special questions this month:
Q: How do you see your business activity growing in the second half of 2024?
A: Over one third expect marginal growth in the coming months. 31% responded they foresee no growth, while 20% of respondents expect business activity to decline. Only 10% believe activity will increase by 5% or greater.
Q: Have you accelerated any plans to prepare earlier for this year’s holiday season?
A: Almost half responded they have not sped up any holiday preparations, whereas 17% responded they have. 20% said this was not applicable to their firm and the remainder responded they had not yet decided.
View the full release here.

Brett Linton
Read more from Brett LintonLatest in Economy

ISM September survey captures deepening manufacturing gloom
The Institute for Supply Management’s (ISM) latest monthly report on manufacturing reflects a bleak view of American industry in September.

Key industries concerned over government shutdown’s impact on steel, manufacturing
Trade groups cautioned that a prolonged shutdown could strain US industry.

Chicago Business Barometer catches cold winds of contraction in September
The Chicago Business Barometer's September reading indicates a softening in overall business activity in the Midwest for the third consecutive month, with new orders and backlogs retreating further.

Metalforming market sentiment takes a dive in September: PMA
Metalforming manufacturers anticipate a decrease in near-term conditions, according to the Precision Metalforming Association's (PMA) Business Conditions Report for September.

AIA: Architecture firms still under pressure
Architecture firms reported a modest improvement in billings through August, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.