Economy
Chicago Manufacturing Activity Strengthens in January
Written by Sandy Williams
January 31, 2015
The Chicago Business Barometer rose 0.6 points in January to 59.4 from a revised reading of 58.8 in December. The increased manufacturing activity follows two consecutive months of declines.
The index showed a modest increase in a new orders, order backlogs and production, driving employment to a 14-month high.
Inflationary pressures eased for the fourth consecutive month and at faster rate in January due to low oil prices. Inventories of finished goods dropped 15 points, falling into contraction after strong growth in the second half of 2014.
Commenting on the Chicago Report, Philip Uglow, Chief Economist of MNI Indicators said, “This was a solid start to 2015 with current growth in orders and output consistent with ongoing strength in US GDP. Encouragingly, the January survey showed that strength we saw in the second half of 2014 is having a significantly positive impact on employment.“
”The sharp fall in input costs due to the lower oil price, evidenced by the lowest level of Prices Paid for more than five years, will have a positive impact on business activity as well as consumer spending.“
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
US sets Section 232 tariffs on trucks and buses
Medium- and heavy-duty trucks (MHDV) and buses imported to the US will start being charged Section 232 tariffs beginning Nov. 1.
AMU: 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.