Economy
Chicago Business Barometer Surges to Largest Monthly Gain in 10 Years
Written by Sandy Williams
October 31, 2013
The Chicago Business Barometer surged 10.2 points to 65.9 in October—it’s highest reading since March 2011 and its biggest monthly gain in 30 years. Double digit growth was seen in New Orders, Production and Order Backlogs.
The October government shutdown seemed to have little effect on Chicago area businesses. New orders shot up to their highest level in nine years. Production was at its highest level since February 2011.
Chicago businesses reported brisk inventory restocking and higher customer demand. Launch of new product lines and distribution channels added to the surge in activity.
Order backlogs shed its contractionary phase to reach its highest level since early 2011. The increase in business activity pulled employment up to its highest level since June 2013.
“While it is a little surprising to see such a large rise in activity, the consistent increase in the Barometer over the past four months suggests the recovery is gaining traction,” said Philip Uglow, Chief Economist at MNI indicators.
The Chicago Business Barometer is a monthly indicator of business activity of both manufacturing and nonmanufacturing firms in the Chicago area. It is published by MNI Indicators in partnership with the Institute of Supply of Supply Management (ISM)-Chicago.
{amchart id=”111″ Chicago Business Barometer Index}
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
New York state manufacturing activity ramps up to multi-year high
New York state’s manufacturing sector saw substantial recovery in November, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
CRU: Dollar and bond yields rise, metal prices fall as Trump wins election
Donald Trump has won the US presidential election. The Republican party has re-taken control of the Senate. Votes are still being counted in many tight congressional races. But based on results so far, the Republicans seem likely to maintain control of the House of Representatives. If confirmed, this will give Trump considerable scope to pass legislation pursuing his agenda. What this means for US policy is not immediately obvious. Trump will not be inaugurated until Jan. 20. In the coming weeks and months, he will begin to assemble his cabinet, which may give a clearer signal on his policy priorities and approaches. Based on statements he made during the presidential campaign, we have set out the likely direction of his economic policy here and green policy here.
ISM: Manufacturing index fell in Oct to lowest point of ’24
Domestic manufacturing contracted for the seventh straight month in October, according to the latest report from the Institute for Supply Management (ISM). This marks the 23rd time in the last 24 months that it has been in contraction.
Chicago Business Barometer slips in October
The Chicago Business Barometer fell to a five-month low in October and continues to indicate deteriorating business conditions, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Final Thoughts
We all know the American news cycle moves pretty fast. Viral today, cached tomorrow. So it is with the US presidential election on Tuesday, Nov. 5. People have election fatigue. They've moved on to other things like planning holiday parties, debating Super Bowl hopefuls, or even starting to look forward to our Tampa Steel Conference in February.