Economy
Chicago Business Barometer Drops 3.9 points In March
Written by Sandy Williams
April 1, 2014
The March Chicago Business Barometer slid to its lowest level since August, down 3.9 points to 55.9. The Barometer averaged 58.4 during the first quarter of 2014 indicating recovery but was down from the 2.5 year high of 63.3 in Q4 2013. First quarter results were likely impacted by the harsh weather during the quarter.
New orders softened for the second month in a row indicating weaker demand. Order Backlogs were at their lowest level since September.
A strong rise in Production helped steady the Barometer as other components weakened. Supplier Deliveries also expanded at a faster rate in March.
Employment dropped sharply, erasing February double digit gains. A reliance on temporary workers in the past four months was offered as a reason for employment losses.
The index for Inventory of Finished Goods fell into contraction and to the lowest reading since July 2013. Prices Paid also dropped for the second month in a row.
“March saw a significant weakening in activity following a five month spell of firm growth. It’s too early to tell, though, if this is the start of a sustained slowdown or just a blip,” said Philip Uglow, Chief Economist of MNI Indicators. “Panellists, though, were optimistic about the future. Asked about the outlook for demand over the next three months, the majority of businesses said they expected to
see a pick-up.”
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Consumer auto delinquencies: Warning sign for consumer health?
The Consumer Federation of America estimates rising total auto debt at a staggering $1.66 trillion, along with increasing repossessions and a sharp increase in delinquencies.
Beige Book: Regional market growth remains mostly flat
Economic growth in some US regions in September was offset by challenges in others, causing the market to appear largely unchanged overall, according to the Federal Reserve’s latest Beige Book report.
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.