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

Steel Summit: ITR economist urges execs to prepare for growth, not recession
If the steel industry professionals who made it to the very final presentation of this year’s SMU Steel Summit were expecting another round of cautious forecasting, they were in for a surprise. Because what they got was a wake-up call.

ISM: Manufacturing growth remained down in August
US manufacturing activity remained muted in August despite a marginal gain from July's recent low, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.

Steel Summit: Dr. Basu blames tariffs for riskier path ahead
Steel executives packed the main conference hall of the 2025 SMU Steel Summit on Tuesday, Aug. 26, to hear economist Dr. Anirban Basu lay out his blunt view of tariffs, inflation, and demand.

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.

US housing starts gain momentum in July
US housing starts rose in July both month-on-month and year-on-year, according to figures from the US Census Bureau.