Economy
Chicago Business Barometer up but still pointing to weak conditions
Written by Brett Linton
February 28, 2025
The Chicago Business Barometer increased to an eight-month high in February, according to Market News International (MNI) and the Institute for Supply Management (ISM). Despite this recovery, the measure continues to indicate deteriorating business conditions, as it has for over a year.
The February Barometer reading rose six points from January to 45.5. A reading above 50 indicates improving business conditions, while a reading below that indicates worsening conditions.
The Barometer has only indicated economic expansion for one month in the past two and a half years (November 2023).
The MNI report attributes February’s rebound to improvements in four subcomponents: production, new orders, supplier deliveries, and order backlogs. Each of these subcomponents recovered five to nine points from January. Employment was the only subcomponent to decline, falling 1.5 points from January.
This month’s survey, which ran from Feb. 1 through Feb. 17, asked respondents two special questions:
Q: What are your plans for selling prices going into 2025?
A: Three-quarters of respondents plan to increase prices. 36% foresee a 2-4% increase, and 14% see a rise of less than that. Another 14% see a 4-7% increase, and 11% expect a hike greater than that. The remaining 25% of respondents expect prices to remain stable.
Q: When are you planning to make your next major capital investments for growth?
A: The majority (64%) are unsure of their investment plans, while 11% plan to invest now, 11% expect to in the second half of 2025, and 14% say next year.
You can view the full report here.
Brett Linton
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