Economy

Chicago Business Barometer declines further in November
Written by Brett Linton
November 27, 2024
The Chicago Business Barometer continues to indicate deteriorating business conditions in November, easing to a six-month low, according to Market News International (MNI) and the Institute for Supply Management (ISM).
The Barometer reading slipped 1.4 points from October to 40.2 in November. Recall that in September it rose to the second-highest reading of 2024. A barometer reading above 50 indicates improving business conditions, while a reading below that indicates contraction.
October marks the 11th consecutive month the Barometer has been in contraction territory.
The index has averaged 42.9 in the first 11 months of this year. The Barometer has only indicated expansion for one month in the past two years (November 2023).
The MNI report attributes declines in November in four of the subcomponents: production, order backlogs, employment, and supplier deliveries. The only subcomponent to improve over October was new orders.
Special questions
Respondents were asked two special questions in this month’s survey, which ran from Nov. 1 through Nov. 15.
Q: Over the past three months, how has your ability to pass on input costs changed?
A: The majority (55%) reported no change in their ability to pass on costs. Just over 44% said they were less able to or somewhat less able to do so. The remaining respondents indicated a somewhat greater ability.
Q: Has there been a change in levels of inventories beyond seasonal norms to offer protection from further supply chain disruptions?
A: Most respondents (73%) stated that their inventory levels are either in line with seasonal norms or lower due to demand concerns. Only 18% reported a slight increase in inventory, while 9% said they were unsure.
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.