Distributors/Service Centers
January 5, 2026
Chicago Business Barometer rebounds in December
Written by Brett Linton
The Chicago Business Barometer increased in December after hitting an 18-month low in November, according to Market News International (MNI) and the Institute for Supply Management (ISM).
The Barometer surveys purchasing and supply management professionals in the Chicago area each month to gauge company-level business conditions. December marked the 25th consecutive month that the index has been in contraction.
The December reading jumped seven points to 43.5, slightly above the 2025 average rate of 42.6. The Barometer is a diffusion index, where readings above 50 indicate improving business conditions and readings below that indicate contraction. The index has only shown expansion once in the last forty months (November 2023).
MNI attributed this rebound to gains in new orders, production, and order backlogs. Weaker supplier deliveries and employment tempered the recovery.
Respondents were asked two special questions in the survey, which ran from December 1 to 15.
Q: Is AI helping your procurement/supply operations?
A: Responses to this question were split. Just over a third (36%) of respondents said they have not implemented AI, and an equal share replied they were in the early stages of implementation. Of the remainder, 14% reported mixed results or said that it is too early to tell, 11% said they have not seen any benefits in their operations, and just 4% replied they are seeing results.
Q: When are you planning to make your next (major) capital investments for growth?
A: Nearly half (46%) said this they were unsure. Of the remainder with a timeline, 25% responded now or in the first half of 2026, 21% replied in the second half of 2026, and 7% said in 2027.
View the full release here.
